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http://www.beyond.com - Article Content Powered By Beyond.comen-ushttp://www.beyond.com/common/images/logos/beyond-logo-144-30.gif2009Sun, 2 Aug 2015 14:23:00 EST120Online commerce giant Amazon.com held its first Prime Day shopping event to celebrate the retailer's 20th birthday. The company claims it was a smashing success, despite thousands of shoppers expressing dismay on social media. Despite the online juggernaut's success as a pure-play retailer, the company may need to adapt to physical stores to grow its revenue stream.

Some retail experts believe Amazon's online commerce model runs counter to current trends surrounding physical stores. Retailers such as Target, Wal-Mart, Staples and Best Buy have found ways to blend locations with warehouses. Customers can purchase items on websites and have them shipped to stores for free rather than pay $99 per year to get unlimited two-day shipping to someone's home.

The fulfillment center model makes returns easier when brick-and-mortar locations accept returns, refunds and exchanges. This obviates customers having to wait several days to return an item to a far-away Amazon warehouse after talking to a representative over the phone. Macy's, Nordstrom and Dick's Sporting Goods have all expanded their online commerce to complement hundreds of stores already serving as anchor retailers in malls and shopping centers. These stores represent major competition for Amazon's market share.

Amazon may recognize this online commerce model as unsustainable. In early 2015, the company sought to purchase some of Radio Shack's failing assets to create small stores where customers can pick up items purchased on Amazon. Even a small space, with one or two employees, may facilitate better customer service because shoppers have someone to talk to in person as opposed to a disembodied voice on the phone telling exactly how to make a return. Instead, Amazon stores can facilitate returns right away.

Another trend Amazon must watch revolves around shopping malls. Occupancy rates of shopping malls rose to 94.2 percent in 2014, a 27-year high. Traditional stores and clothing retailers have moved out, while technology companies, health care clinics and gyms have moved into large mall spaces. Technology stores making headway in malls also mean more competition for Amazon. If the online retailer can snag a small storefront in every mall in America, retailers should be wary.

Two-thirds of retail CIOs believe their companies should combine e-commerce, mobile, social, paper catalog and store sales to best serve all types of customers. That way, a store's customer base remains as wide as possible.

Digital interactions influence as much as 64 cents on every dollar spent in brick-and-mortar stores, so huge retailers must adapt to customer preferences for using apps while in stores to point the way to great deals. Online commerce should be part of the digital push.

Amazon's model of less expensive shipping may not be sustainable. Amazon has billions of dollars of cash on hand. Perhaps it can use that money to create brick-and-mortar stores that facilitate more steady growth in traditional sectors rather than innovative, forward-thinking concepts.

Instead of profits given back to shareholders, the online commerce giant continues to push for growth. The idea behind this growth remains capturing a greater market share of customers who continually want personalized shopping experiences and much better convenience. Unfortunately for Amazon, it may have to move in other directions to compete.

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]]>Vaunted national clothing retailer Macy's joined other companies when it decided to cut ties with Donald Trump and his company, The Trump Organization. Macy's carried the billionaire's signature collection clothing line of mid-priced men's clothing such as dress shirts, ties and polos.

The move comes as The Trump Organization continues to lose sponsors, big-name companies and corporate partners after Trump disparaged Mexican immigrants while announcing his run for president. NBC canceled Trump's reality show called "The Celebrity Apprentice," while Univision pulled its broadcast of the Miss USA pageant. NASCAR, Serta and the PGA have also ditched Trump's business interests.

PVH Corporation, a clothing retailer responsible for licensing Trump's signature collection, followed Macy's example and also ended its contract with The Trump Organization. PVH Corporation, known previously as Phillips-Van Heusen, took brands such as Tommy Hilfiger, Calvin Klein and Speedo to new heights in garment sales and marketing. The Trump Organization has to find another company to sell its menswear line.

Macy's pulled the plug after more than 700,000 people signed a petition on MoveOn.org. The online petition requested that Macy's CEO Terry Lundgren end the company's ties with The Trump Organization. However, Trump claims he cut ties with Macy's because outside groups put pressure on the retailer. Macy's commercials featured the billionaire alongside celebrities such as Sean "P. Diddy" Combs dressed in Trump's threads.

Losses from sponsorships and cut contracts may amount to a drop in the bucket for Trump. CNN estimates the real estate mogul lost nearly $15 million when sponsors pulled out of the Miss USA pageant. The Wrap determined The Trump Organization has lost approximately $50.5 million due to companies cutting ties. The businessman claims his net worth hovers around $9 billion, making his current losses close to 0.6 percent of his overall net worth. Most of his revenue comes from real estate contracts and developments.

After Mexican drug cartel leader Joaquin Guzman Loera, also known as El Chapo, got out of a high-security prison thanks to a tunnel, Trump doubled down on his comments regarding Mexicans. The CEO said his foreign policy towards Mexico would focus on fining the Mexican government $100,000 for every illegal immigrant that enters the United States from Mexico.

The real estate magnate's incendiary comments seem counterintuitive to his business practices. One of Trump's nuggets of wisdom for running a business talks about focusing on the big picture while attending to daily details. Anything, or anyone, that does not ascribe to the same big-picture goal does not belong in the organization.

Perhaps Trump's comments are part of his overall strategy, since his comments made headlines and got his presidential campaign noticed from the start. The billionaire can spend as much of his own money as he wants, so campaign funding is not an issue. He can follow the likes of H. Ross Perot and Steve Forbes into the presidential race.

Unfortunately, Trump may have lost one demographic that shaped the previous two presidential elections. Hispanics created a huge voting bloc that elected President Barack Obama to consecutive terms.

The Trump Organization has taken several hits from retailers, sponsors and businesses since the CEO announced his run for president. If past patterns hold true, however, though Trump's bid for the White House might fail, his business interests will continue to thrive.

Photo courtesy of Eric Roads at Flickr.com

]]>The American retail industry has seen several changes in shopping malls in recent years as once-vaunted retailers Sears, Macy's, J.C. Penney Co. and others have closed stores. Teen apparel giants Abercrombie & Fitch, Gap and Aeropostale have also shuttered stores as consumers turn to lower-priced threads without big brand names attached to them.

Nearly 60 malls sit on the brink of closure, and more than two dozen have closed from 2011 to 2015. Despite these drastic changes occurring in America's shopping malls, the retail industry adapted and new businesses moved into storefronts vacated by apparel stores. The death knell of malls appears greatly exaggerated as the next generation of retail fills the void once held by traditional players.

Technology Stores

Apple, Tesla Motors and Microsoft continue to rise as American consumers pursue their love for new tech devices. Many gadgets are small, so they take up less space within a store. Plus, items such as tablets, smartphones and video game consoles cost much more than clothing, so stores make a larger profit with less overhead. Technology stores have fewer employees as well, a factor that also lowers a store's expenses. Add in plenty of new cellphone stores opening in shopping malls all over the country, and the technology boom appears ready for each new handheld that hits the market.

Health Care Clinics

Health care clinics continue to grow at about 20 percent per year, thanks in part to new health care initiatives and an aging population. Health care groups typically pay more for prime space in shopping malls, especially if they need larger spaces to store medical equipment and provide patient privacy. Malls represent a perfect blend of convenience and practicality for health care clinics trying to reach more patients in suburban America. Worried moms can bring their kids into mall-based clinics for convenient checkups, while mall employees can have get an examination on short breaks from work. Clinics in malls represent a vital way winter holiday shoppers can get better — faster — during cold and flu season, and they keep noncritical patients out of overused emergency rooms. In the end, these clinics keep costs down for consumers while making money in new ways.

Gyms

Gyms and fitness centers offer workouts to busy people in shopping malls who can buy stuff, eat and run all in the same trip. Similar to health care clinics, fitness centers thrive in large spaces with room for treadmills, weights, pools, locker rooms and running tracks. As more Americans take control of their own health, fitness centers have a foothold on the changing retail landscape.

The shopping malls of America are not dead yet, and some retail centers simply need time to adjust to new paradigms. The faster malls promote these up-and-coming facets of retail, the sooner owners can avoid shuttering these massive complexes altogether.

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]]>Canadian yoga apparel manufacturer Lululemon faces another massive recall after its second product mishap in two years. The 2015 Lululemon recall revolves around 318,000 women's tops with faulty drawstrings that have caused seven eye injuries. In 2013, the company recalled see-through pants that were a little too revealing.

The recall affects approximately 133,000 tops in the United States and another 185,000 in Canada. The U.S. Consumer Product Safety Commission states the Lululemon recall stems from 20 styles of jackets and hooded tops that contain hazardous elastic drawstrings at the neck. When the drawstring, combined with the hard tip, gets pulled back and suddenly released, the tip may fly into someone's eyes and cause an injury.

The CPSC advises any customer with the tops to either remove the cord completely or ask Lululemon to send a replacement cord. The new, non-elastic drawstring should arrive, free of charge, with instructions on how to install the cord.

A company spokesperson regretted any inconvenience, noting that no lawsuits have been filed nor have any serious injuries been reported with respect to the faulty drawstrings. The company claims to have taken "necessary proactive action" to rectify this latest Lululemon recall.

The faulty drawstrings occur just as the company recovers its economic clout from a widespread incident in 2013. The 2015 Lululemon recall comes two years after the company's first major product mishap when the retailer recalled roughly 17 percent of its Wunder Under yoga bottoms. The popular pants were too sheer in some places, making the stretchy garments see-through in sensitive areas. The first recall cost the company $67 million in sales.

One major mistake during Lululemon's first incident revolved around its customer service practices and the return policy for Wunder Under pants. Before the first Lululemon recall, clerks in Toronto forced a shopper to prove the yoga pants were too sheer and not up to the brand's standards. The incident embarrassed the shopper and forced Lululemon to issue the massive recall. The company then had to make a statement that told consumers they did not have to demonstrate the see-through nature of pants upon returning them to stores.

The vaunted retailer learned an important public relations lesson in 2013. When consumers complain about a product, companies should err on the side of the loyal customer base before causing even more problems. Store clerks should have been more responsive to the shopper's complaints before attesting to the brand's trustworthiness within the apparel industry. Lululemon's faulty return policy initially stated employees may inspect any item before deeming it unworthy. Clerks should have found other ways to test the product, or simply accepted the person's return, before bad press forced Lululemon to lose tens of millions of dollars. Hopefully, the company learned from its mistakes as it deals with this new recall.

Perhaps the retailer should take a proactive stance and ship replacement drawstrings to stores when customers try to return the tops. This gives clerks two options. One includes giving consumers an entirely new garment, and the other starts with replacing the cord.

Retailers everywhere can learn from the Lululemon recall regarding how to handle shopper returns. Always side with the consumer to earn business back from loyal customers.

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]]>Online retailers, such as Amazon.com, continually disrupt how brick-and-mortar stores operate. Consumer spending has changed thanks to technology, and online grocery shopping may become the next big thing when it comes to people's food buying habits.

A recent survey released by the Hartman Group reveals that online grocery shopping is still a niche market in the overall shopping industry. However, consumer spending has increased in this realm due to convenience and ease of use. The process of shopping for groceries online is similar to shopping for non-grocery items. Many consumers have let go of the traditional notions of shopping and have embraced new ways to obtain food.

Early adopters of this practice liked the new way to shop for food. Now that technology has caught up with convenience, online grocery shopping has become more cost effective for everyday consumers. The survey by the Hartman Group suggests that up to 39 percent of consumers who purchase groceries online do so to save time. About 36 percent do it to save money while 27 percent shop online in to save on gas. Fifteen percent of consumers shop online in order to buy items in bulk.

Most supermarkets that offer online grocery shopping exist as mid-market stores attempting to compete with larger chains. Regional chains that serve local populations have the resources and service qualities to engage in this type of shopping endeavor. National chains offer lower prices, but less service. If places like Wal-Mart choose to deliver groceries to homes, prices of food may increase. Smaller, specialty grocers have unique items that cost more, but lack the financial resources to deliver goods to people's homes.

Similar to other online retailers, grocery stores should target their efforts to increase growth in the online shopping arena. Young city dwellers love new ways to shop, while suburban families may not have time to buy groceries amid soccer practices, band camp and Cub Scouts. One under-served need among shoppers includes people who go to stores every single day on the way home from work. Perhaps stores can add shopping apps that scan UPC labels on foods in a kitchen and the grocery store then makes suggestions for various products.

One possibility for online grocery shopping focuses on specialty companies that buy groceries at retail price from local stores and then mark up prices by a percentage as a way to make money. These types of companies typically start in larger cities. Once their business model becomes successful, they can then expand to middle-sized urban areas. Supermarket owners have a choice to let these companies make deliveries on their own, or use in-house employees to deliver groceries with fleets of vehicles to earn more market share.

The future of online grocery shopping looks bright, but the concept has not caught on fully just yet. Given more time, more investments and better cost-effective delivery methods, consumers and grocers alike may see the value of this paradigm as supermarkets mimic larger online retailers.

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]]>Millions of consumers across the United States rely on mobile phones, smartphones and connected devices in their everyday lives. As such, mobile advertising has become an effective way for retailers to get the word out regarding deals, promotions and new products.

A recent report, and perhaps the first of its kind, examines the return on investment with mobile advertising versus desktop computer ads. Catalina and 4INFO found the total sales per 1,000 impressions on mobile amounts to $29.90. Meanwhile, desktop computer sales reach $13.10, or less than half of mobile. Smartphones and apps from several companies tracked data that led to sales rather than simply monitoring clicks, taps and swipes.

Even better for the mobile advertising market, campaigns that focus on mobile require half as many impressions. The return on ad spend comes to approximately $2.57 per every mobile ad campaign, which represents a 15 percent increase over desktop ads. Data and metrics have moved away from analyzing clicks on ads, and software now analyzes sales per campaign as a way to measure the effectiveness of online advertising.

The incentive for these advertisements revolves around two basic facets of smartphone technology that work in conjunction with each other. GPS locators allow smartphone apps access to someone's cellphone information, thereby giving retailers a chance to create targeted campaigns to local shoppers. Some apps may even monitor someone's Web browsing habits on a smartphone to produce even more personalized advertising. Past purchases also target customers with the correct mobile advertising.

Data from this report should not discourage traditional banner ads on computers. The most effective campaigns start with a banner ad resized to fit smartphone screens. As many as 87 percent of retailers that participated in the study saw a return on investment from a standard banner ad as the beginning point of a marketing push. Banners tend to create brand awareness, and retailers produce 10- to 15-second videos as a supplement to banners. These videos mimic formats similar to those seen during popular television shows. Despite mobile devices gaining popularity, banner ads prove desktop campaigns are not dead yet.

Although several startups and smartphone app designers create wonderful tools for consumers to use, a few major companies successfully run mobile advertising campaigns. Google's AdMob works in conjunction with its vaunted AdSense program to produce ads on Android smartphones. Apple's iAd allows companies to market products and services through Apple iPhones, iPads and iPods. HasOffers has a network of affiliates that track mobile ads. Facebook also got into the mobile realm with its own advertising software.

Retailers should know how to get repeat customers back into the store thanks to mobile advertising. Creating an app remains one of the easiest ways stores produce personalized experiences for shoppers. Personalization leads to better engagement and increased revenues thanks to ads that mean something to the customer.

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]]>According to the stereotype, millennials spend all their time glued to their smartphones, streaming media and interacting with mobile apps. However, research released in June 2015 from analytics firm Neustar that used real-time offline and online transaction data suggests that millennial buying habits haven't changed much from those of their parents.

Millennials typically frequent the same big brand stores as people in the older generations. Nearly two-thirds of millennials surveyed said they had bought something from Target in the past three months. Almost half had shopped at Home Depot during the same period.

Although digital downloads are popular among this generation, millennial buying habits reveal they still have a love of physical formats. Thirty-nine percent of people between the ages 18 and 34 have bought a hardcover book in the past year, while only 7 percent purchased and downloaded an audio book. Despite the ease of downloading or streaming movies and other visual content, millennials still enjoy a trip to the movie theater. During the past six months, 35 percent have bought tickets to a showing at an AMC theater.

The data on millennial buying habits suggests this generation has a strong sense of nostalgia despite its relative youth. Many millennials remain loyal to big brands they enjoyed as children such as Capri Sun juice pouches.

This survey data shows the myths about millennial buying habits moving entirely online are false. Other myths about millennials still persist despite research showing they might not be as true as they first appear. For example, the stereotype that millennials communicate solely on social media prevails, but a study from Bentley University has shown they actually prefer to discuss important work-related issues face to face.

Other studies have revealed millennials aren't as lazy or as self-absorbed as their critics claimed. Millennials actually have a very strong work ethic although they're less likely to remain loyal to a particular company than older workers. By understanding both millennial buying habits and career ambitions, businesses can learn to engage this generation as both consumers and employees.

Overall, the Neustar research reveals millennials are perhaps not as different from the rest of the population as some people think. Despite fear-mongering predictions, millennial buying habits haven't entirely moved online. Like people of other generations, millennials have career ambitions that involve working hard and being valued by their employers as important members of a team.

In light of the latest research, perhaps it's time to stop thinking of millennials as an entirely different species. Despite all the hype, millennial buying habits are similar to those of older generations in that they still shop at big stores, enjoy a good trip to the movies, and gain pleasure from the feeling of a real hardcover book in their hands.

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]]>Cashless payments in the United Kingdom have overtaken cash-based transactions as the preferred method for consumers to purchase items. This first occurred in July 2014, according to Britain's Payments Council. The industry group warns retailers that do not accept electronic payments do so to their own detriment.

The total number of cash payments made by British consumers fell to 48 percent in 2014, as compared to 52 percent in 2013. If the trend continues, even more consumers in the United Kingdom should adopt cashless payments moving forward. As many as 10 percent of Brits do not carry cash with them at all, making electronic payments even more vital to businesses, since one in every 10 customers may leave a store if plastic is not an option.

A study by Worldpay UK discovered that up to 60 percent of people ages 25 to 34, a key economic demographic, prefer not to carry cash at all. Reasons vary from convenience and speed of payments to added security. Cashless payments help consumers buy things online and make quick purchases in a store. Busy consumers do not want to spend extra time fishing for coins in pockets or counting currency in a wallet.

New forms of payment have become the norm for younger consumers, and companies should follow the trends or soon risk losing their client base. Cashless payments made with credit and debit cards increased 6 percent in 2014, while payments made by cash have declined 14 percent from 2010 to 2015 across the United Kingdom.

Contactless payments increased 150 percent between April and October 2014, meaning consumers continually opt for new ways of using cashless payments. More and more Brits use plastic for everyday items such as food, coffee and groceries.

Expectations of younger consumers stay high. As many as 20 percent of British spenders ages 18 to 25 believe shops may stop accepting cash within five years. A total of 42 percent of consumers believe retailers shall cease taking cash within 20 years.

These sentiments regarding a cashless society follow similar trends in Denmark. The Danish parliament unveiled a plan to repeal laws that require retailers to accept cash as forms of payment. Some proposals include making electronic methods the sole method of payment at gas stations, restaurants and clothing retailers by January 2016.

Danish spending trends are even more pronounced than in Britain. A whopping 84.2 percent of transactions in Denmark came from credit or debit cards. Ireland has an even greater rate of electronic transactions, but neither Ireland nor Denmark have the same economic clout as the United Kingdom.

British retailers should note the progressive movements in retail occurring in nearby countries. Cashless payments reveal this trend could shape the retail industry for several decades, as consumers want easier ways to pay for things that do not involve more traditional methods.

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]]>The idea of a cashless society may sound like science fiction. Imagine a world where everyone depends on electronic payments made by swipe cards, thumbprints or retinal scans. That type of future took one step closer to reality thanks to a proposal put before the government of Denmark.

The Danish parliament revealed a plan to repeal laws that require retailers to accept cash or currency as payment. Instead, proposals aim to make electronic payments the only way to pay at gas stations, restaurants and clothing retailers by January 2016.

The impetus behind the cashless society movement stems from the spending statistics of Danes. Electronic payments made by credit or debit cards accounted for 84.2 percent of Danish transactions in 2012. E-wallet payments have made significant growth since then. Only Ireland tops Denmark in terms of the popularity of noncash payments.

Supporters of the measure claim electronic payments provide more security for merchants, improve accounting and decrease the amount of time proprietors spend counting cash at the register. Banks spend less time storing, counting and sorting money.

The retail industry stands to be on the front lines of innovation with respect to this Danish proposal. Retailers could have the option to accept the Danish krone as payment, but they do not need to if the proposal becomes law. Other businesses, such as doctor's offices, post offices, hospital cafeterias and dentists, still must accept cash as a form of payment.

The Danish government also stands to gain from purely electronic payments. Tracking payments and collecting taxes become easier, and governments can fight corruption better. Opponents claim a cashless country may marginalize the poor, but many government services for the disadvantaged already use electronic payments and debit cards to distribute benefits.

Money wears out eventually. Paper currency breaks down and must be reprinted. Moving towards cashless payments saves the Danish government even more taxpayer money by printing less currency and minting fewer coins. Counterfeiters have less sway, and the price of metals would not affect how much money it costs to mint coins. Despite its lack of traditionalism, moving to cashless payments saves money across all demographics.

Danish groups believe not every retailer may suddenly drop cash altogether. The process could be gradual and may take years to spread throughout the country to every retail store.

More and more companies rely on cashless payment systems as a way to accept money for goods and services. PayPal, Google Wallet and Apple Pay have all expanded their reach into the retail sector. Payments made through mobile devices, instead of a card swipe, have become mainstream ways for consumers to check out at registers. Millennials especially enjoy making mobile payments as the younger demographic takes over consumer spending in the United States.

Electronic payments represent the wave of the future. The Danish experiment may have implications for the retail industry throughout the rest of Europe, and perhaps the United States, decades down the road. Cybersecurity and hackers remain two problems the Danish proposal faces if something goes awry with the proposal.

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]]>Social media has reinvented the way people and businesses communicate with one another. Retailers can use social media platforms to create a strong and loyal customer base. By introducing a purposeful and well-planned social media strategy, retailers can engage with specific online communities to cultivate real connections. A social media strategy is not about direct sales. It is about connecting with customers who then connect to a product or lifestyle.

According to research by Vision Critical, over 40 percent of social media users made a purchase after connecting with that product and business on Facebook, Pinterest or Twitter. Successful businesses understand that to stay relevant in this fast-paced retail environment, they need to step away from traditional marketing methods and move toward digital marketing.

When diving into the world of social media marketing, you should focus on what makes your business unique. Then, choose two or three platforms that best fit your company's personality, and devote a set amount of time every day to managing these accounts. Designate one person, or a specific team of people, to handle these accounts to maintain a consistent style and voice.

Of the numerous social media outlets available, retailers can find platforms that appeal to their intended audience. Facebook is a great place to create a general business page. Spread word about the products you are selling by connecting with friends and family and by asking them to promote your page. Make sure to frequently update your page status and focus on special promotions or unique products that may appeal to the masses.

Twitter is another example of a social media platform that several consumers use. Keep tweets informative, and be sure to respond to any retweets. This is a good place to connect with similar businesses or products and cross-promote. Use hashtags to increase your audience and promote trends. Poll your followers to add another level of engagement.

Younger consumers are more likely to use lifestyle applications such as Instagram and Pinterest. Instagram connects pictures to people by using hashtags, similar to Twitter. Consumers are drawn to pictures of your products or by seeing a visual representation of the lifestyle you are selling. Pinterest allows consumers to bookmark their favorite styles and is also lifestyle-oriented. This is an ideal platform for potential customers to discover and share your products.

There are many ways for retailers to engage with consumers through social media. Developing a social media presence helps promote a retailer's persona while bringing the right customers to the table. The ultimate goal is to increase sales by bringing people to the storefront or website. In today's retail environment, making connections through social media may turn a one-time shopper into a loyal and lifetime customer.

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]]>Millennials represent a generation of people who does not engage in traditional banking activities as much as previous generations. The advent of PayPal, prepaid debit cards and other pay-as-you-go services have contributed to lower rates of millennials with bank accounts, but a new banking app looks to reverse the trend with a younger demographic.

Mobile banking, unlike traditional banks, is a huge hit for people 18 to 34. To reach a younger audience, Infosys Finacle created a banking app for financial institutions to offer their customers. The Indian tech firm launched its mobile Finacle Youth Banking smartphone app in 2015 to target teenagers from ages 12 to 18. The aim is to make banking fun, while also teaching older children financial responsibility.

This app includes three crucial steps to get teenagers involved in mobile banking. Users must register, submit various bits of personal information and agree to set transaction limits. Any increase in transaction limits must be approved by a parent or guardian. The idea is to give children a taste of what adults do in their everyday banking activities.

Interactive features on the banking app range from goals management with respect to saving, payment transactions, money transfers and online shopping. A few programs use games and infotainment to teach children various aspects of money management. The simple interface may be a bit elementary, but the firm wants to make banking easy, fun and interactive. When children of millennials get on board for banking, hopefully the parents follow suit.

Financial institutions can sign up for the banking app, customize it according to their needs and have it running within a few weeks. This software is available only for smartphones or tablets as opposed to other web-based accessibility. Use in the United States may not catch on as quickly, because tools like those available in this system already exist for kids who use banking platforms.

The key to this app revolves around how well Infosys engages with customers. By 2017, as much as 50 percent of e-commerce revenue may come from customers who use mobile devices to shop. Clearly, millennials and their children love to use mobile devices versus traditional Internet access points. The more banks create customer interactions on mobile devices with apps, the better chance these children have to become future bankers with solid financial accounts.

Mobile engagement continues to be one of the crucial technology trends moving forward as contemporary society moves toward more mobility and better access to services using apps on faster and smaller devices. Children are a perfect demographic to try to win over now as consumers of the future who have money to spend when they enter the workforce.

The banking app from Infosys offers another option for younger bankers to use mobile options for managing finances. If the engagement trends move forward, those younger bankers become more savvy spenders as they grow older.

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]]>An Asian trade pact among 12 nations may allow Nike to create up to 10,000 jobs in the United States over the next 10 years. The agreement, brokered by the Obama administration, needs congressional approval to become law in the United States.

The Asian trade pact, known as the Trans-Pacific Partnership, eliminates duties so Nike can free up extra revenue for other operations. Although many Nike shoes are made overseas, jobs in the United States could revolve around technology and engineering aspects of the shoe business. The company expects to create 40,000 jobs worldwide. Nike employs more than 1 million people in factories across the globe.

Obama made the announcement of the trade deal at Nike headquarters, where he was joined by CEO Mark Parker. Republicans back the trade agreement, but Democrats are wary that the Asian trade pact may send more jobs overseas rather than keep them in America. Obama called his own political party's opposition "wrong."

Obama believes the international agreement would counter China's economic juggernaut, especially when it comes to labor standards, wages and currency manipulation. The Asian trade pact may increase environmental standards among American trading partners. The move could make other nonpact countries increase their labor standards to compete. The overall goal of the plan is to increase the trade balance of the United States among Asian countries that largely export goods to America.

Parker wants to use the Asian trade pact to move his company beyond Nike shoes. The CEO expects to create products customized for individuals thanks to innovations in engineering and technology, which includes making apps for new products such as the Apple Watch. Innovations may change how the company manufactures shoes in all aspects of the production process. Nike's revenue continues to climb; the company had $7.5 billion in revenue in the third quarter of 2015, which was 7 percent higher than the previous quarter.

This new push by Nike comes two years after it decided to invest $600,000 in a company known as Grabit. The firm's electro-adhesion technology could streamline the manufacturing process of several companies, including how Nike makes its shoes. The company could save millions of dollars due to lower labor costs, better risk management, greater output and better revenue. More efficient factories put products on store shelves faster, while workers reduce injuries on the job due to repetitive motions. Even if Nike's Grabit investment does not necessarily mean all of the jobs created for Nike stay in America, smaller firms get a chance to increase their labor pool by hiring more engineers and programmers to help implement their technology for customers such as the vaunted athletic shoe maker.

The Asian trade pact could create high-paying manufacturing jobs in the United States that revolve around automated processes for making high-end athletic shoes. If Nike's customization plan comes to fruition, someone could potentially design a shoe with a Nike app to have the factory produce it within days.

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]]>Loyalty rewards programs have seen steady increases in popularity over the years, and are a useful means for successful branding. Consumers can be easily motivated or influenced by the right kinds of loyalty programs, and offering them can lure customers who are weighing shopping options. Companies looking to establish a strong brand and a loyal consumer base can do so for the price of some simple consumer rewards, though choosing the right rewards is critical.

Some companies, especially those on a tight budget, may not see the benefits of offering customer rewards through loyalty programs, but rewards programs can be an excellent consumer motivator. While starting a loyalty program is not a guaranteed success, choosing the right rewards can give small companies or those struggling with brand appeal a much-needed boost.

To illustrate this with an example, imagine two competing grocery stores in the same neighborhood, offering similar products at similar prices. One of the stores decides to offer a loyalty program that gives shoppers discounts for reaching various levels in a points system — the more they shop, the more points they get, and the bigger discount they get in return. When consumers in that neighborhood are deciding where to buy groceries, they can choose to spend the same amount of money in either store, but earn future discounts at only one. This seems like an obvious choice.

Although offering points and discounts through loyalty programs gets consumers in the door, it does take a bit more to motivate customers to develop a deeper, long-lasting brand loyalty. The most successful brands that incorporate consumer rewards programs use the tactic as one part of a larger strategy in constantly building and expanding.

Loyalty programs set the table for both bricks-and-mortar retail establishments and online marketplaces alike. It has the power to motivate new, curious, thrifty shoppers and retain those who may be persuaded elsewhere if not given incentive to stay. Clearly, loyalty programs are important pieces to a larger puzzle.

When it comes to loyalty programs, not just any reward will do. Consumers are motivated to take part in rewards programs that offer them something useful. Discounts and coupons should be geared toward giving consumers the things they want or need. If offering coupons instead of general discounts, loyalty programs should operate in conjunction with a consumer-tracking system to determine the spending habits of each shopper and then offer each of them rewards based on their purchasing patterns. Likewise, loyalty programs that reward consumers with free gifts should offer a selection of things that people actually want.

Loyalty programs are not the end-all solution for increasing brand loyalty, but they can play a pivotal role in gaining or retaining customers. In cases of close competition, these loyalty programs can be the deciding factor. Choosing the right rewards is one of the most crucial aspects of any loyalty program. Brand loyalty is built over time, and consistently useful discounts are a safe bet for strengthening the brand and consumer relationship.

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]]>Brick-and-mortar retail stores represent the basic way American consumers shop for food, goods, products and electronics. Some store owners get caught up in one retail myth after another based on trends and attitudes of millions of shoppers who have a lot of clout in the industry.

Small Business Trends digests statistics from InReality's study regarding the "Reality of Retail Report" published in May 2015. The report attempts to separate the retail myth from retail reality in the contemporary environment of sales. Read the top five takeaways from the climate of consumer spending and shopping habits to gain a better understanding of retail sales.

Online Shopping

Perhaps the most prevalent retail myth is that consumers do most of their shopping online; many consumers have gotten used to finding items online and having them shipped to a house or to a store's location. However, 94 percent of retail purchases occur in brick-and-mortar stores.

Several national chains have moved to the fulfillment center model that allows shoppers to peruse items at a nearby warehouse to be delivered to a storefront the next day. Online promotions, bulk orders and wider selections keep retailers such as Wal-Mart, Target and Best Buy competitive with juggernauts Amazon and Overstock.

Online Research

Another retail myth says that consumers turn to the Internet for the bulk of their research. The retail reality is that a full 53 percent of shoppers do most of their browsing in the store. The youngest and oldest shoppers have more time on their hands because they do not have pressing commitments such as young children or full-time jobs. Everyone else does more online research due to time constraints.

Mobile Shopping

One myth is that shoppers use smartphones to find cheaper items elsewhere, which means they purchase items from the competition. However, many consumers have shopping lists on those phones, plus Wal-Mart price matches from online stores such as Amazon. So, just because someone finds a cheaper product somewhere else, that does not mean that a consumer always goes somewhere else to make the purchase.

Marketing

One retail myth talks about how traditional marketing and promotions are gone. However, as many as 81 percent of shoppers like coupons, discounts and promotions. Up to 56 percent of respondents feel packaging is important, and 53 percent cite product demonstrations as a viable way to decide whether to purchase a product.

Staffing

A final myth is that salespeople make or break a sale. Yet, only 12 percent of shoppers believe the salesperson is the deciding factor in a sale. Many people already know about the product due to online research, so salespeople have turned into consultants who have information not found anywhere else in the marketing literature.

The overall theme of retail myth versus retail fact indicates that online shopping is not more important than shopping in person. Consumers with more time, and perhaps more money, actually enjoy the brick-and-mortar experience, so store owners should not neglect the basic tenets of traditional shopping.

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]]>A small business that suffers damage or loss has plenty of options with regards to government assistance, lower-interest loans and tax breaks in order to try to recover some of the financial loss. However, some business owners may choose to shut down if the proper time and circumstances present themselves.

The Baltimore riots of 2015 left more than 200 businesses damaged, including a CVS pharmacy that burned to the ground. One small business, a liquor store and bar, had its inventory stolen, cash taken and windows smashed. The proprietor has yet to decide whether or not he will re-open the establishment. First, he has to clean up shattered glass everywhere.

In order to repair the building and order more supplies, the small business owner may take on more debt and owe higher insurance premiums. An insurance policy may cover some of the expenses, but not necessarily all of them. Over the long term, added costs mean higher prices passed along to consumers, a business model that may not be sustainable for some owners.

Many of the small business owners in neighborhoods hit by looters already faced tough conditions before the Baltimore riots. Many buildings were already abandoned. Korean-American retailers became targets of crime in poor areas. The quality of products, services and food suffered as a result.

The burned-out CVS store plans to rebuild, but that franchise has the backing of a multibillion-dollar corporation. A neighborhood business, which represents the economic lifeblood of many communities, may not have the resources to rebuild after a tumultuous event. The Small Business Administration may issue low-interest loans for owners up to $2 million at 4 percent interest. Even with the loans, small retailers may not generate cash flow quickly enough to pay off new debts. Some businesses would rather have grants instead of loans, but those sources of money may need to come from private or nonprofit groups rather than from the government or banks.

Opening a business in an area with a stigma for violence could raise insurance premiums. Some neighborhoods in other riot-torn cities such as Detroit, Washington, and Newark, New Jersey, have yet to recover fully, even from race riots in the 1960s. Some retailers may decide to leave and rebuild elsewhere rather than re-open a damaged storefront.

Owners have several factors to consider when they decide to close a business or keep it open after a calamity. A proprietor may believe too much money was lost and the debt burden is too much. Businesses may have lost market share to other retailers. Costs may have escalated too high, especially for more employees. Most of these types of establishments remain small for 10 years. Either a business grows bigger, stays successful at current levels or closes.

A small business owner can get government help in emergencies, but the negative effects remain long after any rioters leave the store alone. Proprietors must rely on multiple sources, both public and private, in order to make informed decisions moving forward.

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]]>According to recent research, smaller clothing markets, such as Washington, D.C. and Orlando, are pulling ahead of the biggest clothing markets in the United States. These smaller regions are experiencing faster growth in clothing sales than the traditional retail hotspots, according to research by the market research firm The NPD Group.

Clothing sales in brick-and-mortar stores have slumped during recent years, with more consumers than ever choosing to shop online. However, in-store clothing sales grew between February 2014 and February 2015 in a few key regions of the United States. Orlando and Washington, D.C. were two of the markets that exhibited the strongest growth.

In total, clothing sales in the United States grew by 2 percent in the 12 months prior to February 2015. However, in-store clothing sales fell by 2 percent. Clothing stores in Washington, D.C. bucked the trend; in-store sales in this region were up by a healthy 14 percent. Sales growth in Orlando was also strong. In contrast, in-store sales in the top U.S. markets, which are Los Angeles, Chicago, Dallas-Fort Worth and Philadelphia, slumped while online sales grew.

The NPD Group research raises some other concerning facts for the clothing retail industry to consider. As much of 32 percent of sales in clothing stores are impulse buys, compared to just 22 percent of online sales. According to Marshal Cohen, who is the chief industry analyst for The NPD Group, "impulse purchases are the big growth driver" in the apparel sector. Therefore, clothing retailers either need to drive more footfall to their physical stores or get better at convincing customers to make impulse purchases online.

The clothing industry is evolving rapidly. Not only is the method of purchase changing but also the types of clothes that people are buying. New trends such as gender-neutral clothing are starting to make a big impact, not only in specialist boutiques but also in big-name stores.

These kinds of innovations could help to bring people back into apparel stores, which could help to halt the decline in brick-and-mortar clothing sales and increase impulse buys. According to Marshal Cohen, "the apparel industry needs to engage consumers with something new and different — something they can't find everywhere." Only by staying ahead of the curve can stores hope to continue to draw in customers in the face of strong competition from online retailers.

The fact that smaller markets are now outperforming bigger ones in terms of clothing sales growth could be bad news for the traditional clothing retail hubs, including Los Angeles and New York City. With consumers hungry for something new and retail stores facing strong competition from online clothing sales, apparel stores in the big clothing markets need to innovate to stay ahead of the curve.

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]]>Customer success typically happens after a customer buys a product or service, and then that client needs to have additional contact with your company to further define how the product works within the customer's frame of reference. The customer experience, instead of success, helps maintain relationships with clients for years after the sale finalized.

Turn your customer success team into a customer experience team thanks to interconnectedness in the company that starts from the top and reaches the bottom. Every aspect of service within the sales industry can help keep customers by making them successful at what they do. This occurs because when customers win with your products, they come back to your company for more, and repeat business continues.

Find out the root causes of a negative customer experience. Bad customer encounters rarely occur because of one person. Examine gaps within customer interactions by mapping the journey clients take from the first time they recognize your product or service to the renewal phase of customer involvement. Determine how some aspect of your company lost a customer, even after the sale. Look at inconsistencies in social media, unresolved support tickets or phone interruptions. Your company must solve those snafus before more clients leave for a competitor.

The best way to track a customer's journey revolves around big data. Assess customer experience based on trackable, tangible numbers found by analyzing engagement rates, usage data, survey results and NPS scores. Your company already pays a lot of money to access these numbers, so use them to their fullest potential and improve your customer interactions.

Get all departments on board for customer experience concepts. It all starts with the CEO, who sets company goals in terms of maintaining viable client interactions for the best outcome. Your company's leadership structure must be on board for giving customers the best possible service, every single time. Perhaps the most prevalent industry that needs this kind of attitude is software as a service. Where would Facebook, Twitter, Intuit or Microsoft be today had these companies not given their customers the best possible attention? Without good customer interactions over and over, these firms lose revenue to the competition.

A good customer journey leads to customers for life. When clients remember good experiences with your company, they think and talk positively about your brand. This type of free advertising cannot be purchased with products alone. Consider that it takes six times as much money to attract a new customer as it takes to keep one you already have, and the cost savings of good customer interactions becomes clear.

The return on investment for mapping a customer's journey means repeat business time after time for years to come. Synchronize your organization to create the best possible customer experience by implementing changes that put clients first before revenue. The profits continually flow once you learn customers come first.

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]]>Grocery stores gained notoriety for huge, big-box stores that opened during the 1990s and early 2000s. With the advent of online shopping and changing customer bases, huge supermarkets have started to downsize. Many larger, supercenter stores have less revenue, while smaller stores with less product on the shelves are becoming profitable.

Tesco, the United Kingdom's largest supermarket chain, had its largest loss in the 96-year history of the company when it had to write down more than $7 billion in property expenses. Smaller stores such as Aldi favor more compact stores with fewer products for convenience. Increasingly, shoppers have begun to frequent smaller stores throughout the week rather than shop in one store on the weekend. Customers would rather shop at grocery stores nearby to get a few things rather than head to large supermarkets to buy food in bulk and stock up for a week.

This convenience of smaller stores on the way home from work, coupled with online shopping and in-store pickup, have led grocery stores to rethink their retail strategy. In America, Wal-Mart allows customers to purchase toys, bicycles, sundries and housewares online to send to stores for pickup. Individuals pay for stuff online, pick up these items during their normal shopping routines and take them home without shipping fees. The success of Wal-Mart's Neighborhood Market stores bears this out.

In the United Kingdom, Tesco has 1,735 convenience grocery stores as of 2015 versus just 17 in 1999. That growth occurred even as Tesco's largest stores went from just five to 250 over that same span. The British supermarket giant shuttered 43 unprofitable superstores and stopped plans to build more in 2015.

Tesco rents space to other businesses such as car washes, cafes, yoga studios and exercise gyms in order to make use of the extra space it has in stores. Competitor Sainsbury's decided to rent extra space to concession stands from Argo, Virgin Holidays and other companies. Grocery stores may not have one-stop shopping, but they can offer different experiences based on what already exists the community. If one store sees a need for a gym, then that space can be filled with workout equipment used by customers instead of empty shelves with unsold products. Other large store chains rent apartments above their retail space to make ends meet.

Shoppers love convenience, such as avoiding lines at checkout counters. Tesco implemented a scan-as-you-shop feature that downloads your purchases to an electronic bin as you shop. On the way out, customers place their items on a scale to see if the weight matches what was scanned. Then customers pay and exit the store without waiting on a checkout clerk. Self-checkouts have been in Wal-Mart stores for years.

Goldman Sachs believes Britain's top three publicly traded supermarket chains must cut store space by 20 percent in order to be profitable. Tesco does not want to close any more grocery stores. The battle for supermarket customers continues to wage, and smaller stores coupled with Internet shopping seems to be the most viable model moving forward.

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]]>National retailer GameStop buys and sells merchandise from current gaming systems. Customers can walk in with a gently used Nintendo Wii, XBox 360 or Playstation 3 console, as well as newer gaming systems, in order to earn cash or store credit. GameStop also buys video games for these systems to resell later.

GameStop plans to buy retro gaming systems and video games dating back to the Nintendo Entertainment System, starting April 25, 2015. About 250 stores in two markets, New York and Birmingham, Alabama, start the pilot program. If successful, the program may go nationwide by the end of 2015, just in time for the winter holiday shopping season.

Customers bring in gaming systems and games for Super NES, Sega Genesis, Sony PlayStation, Nintendo 64 and Sega Dreamcast, in addition to the Nintendo Entertainment System. The added inventory should increase the number of games GameStop offers to approximately 5,000 titles.

Once in hand, stores send gaming systems to GameStop's Refurbishment Operations Center in order to inspect, test and repair the systems for resale. Customers should expect a two-month turnaround from the initial trade-in period until these consoles and games go on sale. This allows GameStop to build up an inventory of games and systems. The company needs stock because these items only sell on GameStop.com. However, customers may order the consoles in a physical store and have them delivered to their local store. These used consoles have the same warranty as other refurbished systems sold in brick-and-mortar stores, which is good news for customers who want some time to try out their new retro games.

This news follows GameStop's move to accept PlayStation 2 consoles in March 2015 for trade-in credit. The company also found a way to repair the "red-ring of death" in Xbox 360 gaming systems. GameStop has the right idea to guarantee these retro systems without cluttering up the company's relatively small storefronts. Gamers already have a mindset of buying and selling things on the Internet, so stocking these systems should not be a problem.

Retro games have made a comeback since the economic downturn of 2007. In 2012, older games and systems were sold with new fervor. Adults nostalgic for their youth and a new generation of gamers turned away from the glut of new games, apps and mobile games have an interest in classic games. Franchise games like "Final Fantasy," "Super Mario Bros." and "The Legend of Zelda" make die-hard gamers examine earlier titles on retro consoles.

Add YouTube "let's play" channels and live streaming of gameplay to the mix, and the popularity of retro games becomes apparent. Instead of just playing these games, 20- and 30-somethings monetize their hobbies by showing gameplay on YouTube to create advertising revenue.

GameStop looks to make waves in the gaming industry by the holiday shopping season in 2015. The company wants to sell unique gaming systems not normally sold in retail stores, which creates a niche market for the chain to exploit and increases profits with very little extra effort.

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]]>Retailers all over the country are looking for ways to attract teen customers to their stores. Customers who have a good experience as teens are likely to shop at some of the same stores when they are older, making teen customers very desirable for retailers who want to start inspiring brand loyalty. Unfortunately, attracting teen shoppers isn't always easy. Follow these tips to start attracting members of this desirable market segment to your store.

Stock merchandise teen customers want to buy. It sounds obvious, but several retailers are struggling to attract teens simply because they don't understand what teens want. Five or 10 years ago, teens were happy to wear clothing with flashy logos from expensive brands. That trend has changed, leaving retailers like Abercrombie & Fitch struggling with sluggish sales. Stores that carry a mix of basic pieces and on-trend items are likely to attract more teen customers than stores selling trendy merchandise covered with logos.

If attracting teen shoppers to your store is a priority, don't make teens feel unwelcome. Some retailers have started banning teens from their stores after certain hours, which is exactly the opposite of what you should be doing. Instead of banning teens outright, hold shopping events or special promotions just for teen shoppers. If you have a problem with a teen shopper, address it directly with him. Don't try to solve the problem by banning teens from your store or treating every teen who walks in the door like a criminal.

Teen customers are spending less money on clothes than ever before, so take a look at your pricing strategy if you are having trouble attracting teens. If shoppers can go elsewhere to get similar merchandise at a lower price, your prices aren't competitive enough. Slash prices across the board, or offer BOGO promotions to draw teen customers into your store and encourage them to buy more than one item. Teens love to spend money on tech items, so think about stocking tech-friendly clothing. Manufacturers offer jackets, pants, shirts and other items that make using MP3 players, tablets and other devices easier to use on the go.

Several teen retailers struggle because they haven't kept up with changing fashion trends. If you want to attract teen shoppers, your store should always have merchandise that appeals to young people. Watch H&M and Forever 21 for clues about what you should be stocking in your store. These retailers offer a better assortment of merchandise than other teen-focused retailers, making them very popular among the adolescent demographic.

Teens are one of the most valuable market demographics for retailers. If you have been struggling to attract teen customers to your store, think about your current policies and merchandising strategy. If necessary, change your policies to make teens more likely to spend money on your products.

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]]>Losses due to theft amount to $13 billion each year in the retail industry, or roughly $35 million per day. Stores trying to compete with e-commerce websites need to have every advantage possible to improve their bottom line, including ways to prevent shoplifting. Managers and owners must know how thieves think in order to combat the problem.

Retailers can take several practical steps to prevent shoplifting any time the store is open. Shoplifting falls into two types. Organized theft involves groups of people who typically target larger retailers and resell items either online or in "used" merchandise stores. Impulse shoplifters do not go into a store with the intent to steal but do so when they see an item they want. As much as 75 percent of store theft comes from the impulse burglars, although shoplifting crime rings appear to be on the rise as of 2011.

Stores must realize what items get stolen the most to help prevent shoplifting. Smaller, easy-to-hide stuff worth a lot of money walks out the door first. Clothing can easily be folded up and concealed in a jacket. Small electronics may fit into pockets and purses. CDs and DVDs are easily concealable.

Anti-theft technology helps keep high-dollar items from leaving the store. Security tags, combined with security gates, set off alarms when merchandise goes out the door without being purchased. Video cameras capture the perpetrators for later prosecution. Hidden cameras placed all over the store catch people in the act. One such video advance includes tiny, hidden cameras in the eyes of mannequins placed next to high-dollar clothing racks. The eye-level view allows law enforcement to recognize faces.

Low-tech ways to keep items within the store are plentiful. Prevent shoplifting by hiring more staff. Have someone greet customers at the door and keep a subtle watch on customers as they peruse merchandise. Train staffers to watch for potential thieves, such as people wearing bulky coats on a hot day. Check backpacks, large bags and suspicious items while keeping them at a service desk until the shopper is ready to leave. Hire enough staff to tend to shoppers' needs quickly and prevent distractions. One method shoplifters use requires one person to distract a lone clerk while another stuffs stolen items into a bag or coat.

Design your store to prevent shoplifting. Keep wide-open spaces between racks so shoppers are easily seen. Put convex mirrors in corners so staffers may see people from a few aisles away. Put valuable items in locked cabinets, and put your register at the middle front of the store so customers walk out the door in front of your employees. Put signage in your store warning that shoplifters can be prosecuted. Post signs saying you have video cameras and other anti-theft technology.

Numerous methods help prevent shoplifting in your store. Some are simple, while others require a little more up-front investment. When you keep more items from walking out the door unpaid, your profits increase so you can focus on improving your store rather than mitigating losses.

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]]>Aldi has taken the retail industry by storm, making the shopping experience better for customers and taking market share from other established grocery chains. The discount supermarket does not have as many products as a traditional grocery store, but it has enough of a selection to attract shoppers looking for a bargain. As a result, Forbes is calling Aldi a "growing menace" to established companies in the consumer packaged goods industry.

There is no shortage of product options at most traditional grocery stores. Some shoppers prefer a lot of variety, but others want to grab a few items and get out of the store. Aldi makes shopping easier for customers who don't want to spend a lot of time comparing products. The discount supermarket only stocks one brand of each item, eliminating the need to compare prices, package sizes or product features. Each grocery store in the Aldi chain is also rather small, making it easier for customers to move through the store and complete their purchases.

Aldi is able to offer lower prices than other stores because it does not have all the bells and whistles of a traditional grocery store. The only way to get a shopping cart is to put a quarter in the cart rack. When customers return their carts to the rack, they get their quarters back. This tactic eliminates the need to hire employees to retrieve carts from the parking lot. Aldi doesn't have an employee working in every department. Instead, each grocery store has a few employees who perform several functions. Cashiers are also responsible for stocking shelves and sweeping the floors. This eliminates the need to pay extra employees, allowing Aldi to offer reduced prices on its products.

Aldi simplifies the shopping experience by eliminating sales, BOGO offers, merchandising tricks and promotional gimmicks. There are no product demonstrators offering free samples or handing out coupons for new products. Customers aren't asked to join a loyalty program or sign up for a membership card. Some people are still hesitant to shop at Aldi because it is a discount grocery store. Like other discount chains, Aldi needs to get the word out that it has products comparable to those made by trusted manufacturers.

Although the grocery chain is growing, approximately 25 percent of American consumers still don't have access to an Aldi store. As a result, executives at traditional grocery chains need to watch Aldi carefully. The company is well-positioned to continue its expansion and grab some of the market share currently held by big-name grocers.

Until now, executives in the grocery industry have largely ignored Aldi's presence. Because the chain does such a good job attracting new shoppers, industry executives can no longer afford to overlook the discount grocery store.

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]]>In late 2012, Hostess Brands sold its assets amid rising production costs and lower demand for its products. The long-standing American staple was a household name due to its snack cakes and bread products. Then, investors stepped in to reinvigorate the bakery and return it to its former glory.

Billionaire C. Dean Metropoulos and Apollo Global's Andy Jhawar bought Hostess Brands for $410 million and promised to inject $250 million of new investments into the company. Assets included a run-down Twinkies bakery in Emporia, Kansas. The old factory ran inefficiently and was not updated, partly due to mismanagement, high pension costs and high debts associated with the previous owners.

Hostess Brands received a huge boost with a $20 million automated system in the Twinkies bakery that moves the cream-filled pastries with the precision of an automobile factory. Instead of 9,000 employees and 14 plants, the new factory boasts 500 employees and plenty of high-tech wizardry that produces the same output as before. The inefficiency and wastefulness of previous owners is no longer present.

The Emporia, Kansas bakery produces more than 1 million Twinkies per day, about 400 million per year, to account for 80 percent of the output of Hostess Brands. The automation process was so successful, a second automated baking system was added to make the brand's line of cup cakes. Investors sank nearly $700 million into revitalizing the brand, and owners stand to make $2 billion in returns just three years into the process.

The turnaround is a far cry from liquidation in 2012. Hostess Brands suffered due to an ill-timed strike by the Bakery, Confectionery, Tobacco and Grain Millers Union in mid-November 2012. The strike occurred just as the company tried to renegotiate its labor union contract in order to lower production costs. Lenders were able to talk to the Teamsters union with regards to the delivery of baked goods, but the bakers went on strike and production halted. Less than two weeks after the strike started, more than 15,000 Hostess employees were let go.

How did Metropoulos and Jhawar turn around the bakery so quickly? The investors found the company's best assets, modernized production lines and capitalized on massive brand loyalty that built over 80 years in the business. The old investors could not modernize, or move very quickly, because of how debt was structured. Contracts with the labor pool and expensive pensions could not be redone. The new investors were not tied down by such stipulations.

New research and development techniques more than doubled the shelf life of Twinkies from 25 days to 65 days due to tweaks in acidity levels of raw materials that go into the yellow cakes. Because the new Hostess does not sell bread and just snack cakes, the company switched to a warehouse system of delivery using large semi-trucks rather than a fleet of smaller delivery trucks with labor-intensive routes. Instead of 14 factories, Hostess needs less than five. The result is a leaner, more efficient company that uses contemporary production techniques.

The rejuvenation of Hostess Brands is a remarkable achievement considering how quickly the company emerged from bankruptcy and liquidation. Manufacturers and investors can learn valuable lessons from the vaunted brand's turnaround by noting the company's low labor costs, streamlined operations and improved production technology.

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]]>Online shopping has taken the retail world by storm since consumers love the convenience of buying and receiving a wide variety of items in their homes. National retailers make the experience more enjoyable and expedient with easy shipping options and no sales taxes in some cases. Shopping on the Internet has become part of everyday life, and a recent shopping survey shows some surprising facts about the online retail habits of ordinary Americans.

The 2015 "Consumers Tell All" shopping survey from Bronto Software queried 1,000 Americans about their shopping habits. Perhaps the most surprising result was that 30 percent of men engage in online shopping compared to 18 percent of women. Jim Davidson, head of research for Bronto Software, called the finding "surprising."

The survey provides insight into how the two genders define online shopping. Men shop for items online to research reviews and look for sales. Whether they make a purchase or not, they consider these actions part of the online retail experience. Men view shopping as the activity that occurs when they visit a product page, add a product to a shopping cart and continue with the checkout process. Men may also peruse mobile apps, compare prices and research social media before buying, and all of these activities they consider "shopping."

Women, on the other hand, often define online shopping as the physical purchase of an item. Because they actively shop more often than men, women tend to see the process differently. More experienced shoppers separate the research process from the physical buying of an item when discussing e-commerce habits. Looking at sales, reading Facebook reviews and talking to friends about the latest baby clothes are social aspects of shopping to women and different than the physical act of handing over money.

Other trends reveal 61 percent of shoppers prefer mobile Web browsers for online shopping, versus 39 percent who want shopping apps. The reason for this is due to larger screen on smartphones, plus mobile Internet searches offer more freedom and flexibility to search. Web browsers are also more familiar to most, and shoppers are more used to the way they operate.

Shoppers on the West Coast are more likely to shop online than consumers in the rest of the country, and 76 percent of West Coast shoppers use a smartphone. As much as 66 percent of these customers shop online at least once per month, versus 58 percent, the lowest percentage, for the Midwest.

The trick for retailers is to make the online experience as seamless as possible. Consumers do not want to pay an extra $5 for two-day shipping and often prefer a "ship to store" option. Shoppers like to be able to pick up purchases at 24-hour stores whenever they shop for everyday items such as food or toiletries. Closing the sale relies on customer engagement when the shopper is online looking for a bargain, and big data is a part of that process.

Online shopping saves time and money for people on the go. When companies streamline the process and make it more attractive for men and women, everybody wins.

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]]>Families and retailers alike stood in awe of the future when Mattel announced in early 2015 that it was developing an interactive Barbie doll that would use artificial intelligence to respond to children. Several months later, Build-A-Bear launched its own interactive toy in the form of Promise Pets, plush toys that connect to a mobile app for interactive play. This could signal a new trend in the toy industry capitalizing on Internet connectivity.

Build-A-Bear's interactive toys include a beagle, a golden retriever, a Persian cat and a Yorkshire terrier with plans to gradually introduce other breeds. Users can download a free app that connects to their toy and uses interactive play to teach children about caring for animals. In addition to teaming up with the Petfinder Foundation to raise money for shelter animals, the app itself promotes animal welfare as users advance from Pet Care Rookie to Pet Care Pro by earning Paw Points through various games and activities. Through the app, children learn about pets' feeding needs, potty training procedures, vet check-ups, grooming and exercise. The company's interactive toy development is part of a marketing initiative to broaden the scope of children's play past Build-A-Bear stuffed animals.

Barbie and other interactive children's toys have traditionally spoken using pre-programmed phrases, but Mattel's announced Hello Barbie is set to use ToyTalk's PullString technology, a speech recognition technology similar to systems such as Siri. The doll is planned to connect via Wi-Fi to keep it up to date on pop culture and other factors, and Mattel has announced plans to develop the technology so Hello Barbie can talk to children about career possibilities. Although some consumers are wary of the technology, fearing that Mattel may store information from their children and use it for marketing purposes, the company has stated that the ability to talk to Barbie has been one of the most requested features in focus groups.

Interactive toys have slowly been making their way into the spotlight, with new technologies being implemented every year. Many of these toys have taken the form of animal-like or humanoid robot toys that respond to different commands. For instance, the Zoomer Interactive Puppy follows movement with its digital eyes, learns tricks and understands three languages. The MiP Balancing Robot uses GestureSense technology to let children control it with hand movement, and it works in conjunction with a free mobile app. A continuing trend is the use of Internet connectivity to expand possibilities for play.

With toys like Hello Barbie and Build-A-Bear's Promise Pets in the pipeline, it's clear that interactive toys are set to play a big role in the future of retail. Although toys have had some competition with Internet-based children's entertainment such as gaming apps, interactive toys may bring interest back to physical toys to help improve sales across the retail sector.

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]]>In some communities, thrift stores don't have the best reputation. Many people believe these stores sell stained clothing, old-fashioned furniture and general merchandise that has seen better days. Goodwill is trying to change its reputation by turning some old-fashioned stores into boutiques. If the concept catches on, it has the potential to transform the retail industry and improve the reputation of thrift stores around the country.

Goodwill is testing its boutique concept with Rare by Goodwill, a small store stocked with vintage items and designer clothing. Unlike many thrift stores, the merchandise at Rare is carefully curated. The store's atmosphere is designed to attract younger shoppers. While shopping, customers can play vinyl records or test electric merchandise before they buy. Goodwill plans to capitalize on the chic environment of this boutique by attracting shoppers who are willing to pay more money for high-quality items, even if they have been previously used.

It makes sense to put traditional thrift stores in cities where citizens are struggling to make ends meet, but the high-end boutique concept is a better fit for some of the more prosperous cities in the United States. The Rare boutique in Anaheim tends to attract customers who want to shop in a cutting-edge environment without paying top dollar for their purchases. Traditional thrift stores usually have harsh fluorescent lighting, racks crammed with merchandise and bins of toys and games scattered throughout the store. Goodwill boutiques are smaller and more attractive, which makes it easier to attract shoppers in search of high-end merchandise.

Goodwill recently opened the Déjà Blue Boutique in Denver. The boutique has recessed lighting and plank-wood flooring, making it feel more like Anthropologie or Urban Outfitters than a Goodwill store. The Déjà Blue Boutique has merchandise ranging from Chanel blazers to Coach handbags, attracting customers who have the means to spend a lot of money. The store also has the perfect location; it's just two blocks away from the local country club.

The boutique concept is just one of the many things Goodwill is doing to change its image and draw in new shoppers. The organization is also working on a concept called Second Debut, a store that carries high-end consignment merchandise. Goodwill executives hope Second Debut will attract customers in need of high-quality professional clothing. An initiative called 100% Neighbor Made is helping the organization develop relationships with local companies in New England. The initiative allows small business owners to sell their products in Goodwill thrift stores.

Testing new markets and meeting customer needs are two of the most important things a company can do to stay competitive in the retail industry. Goodwill is doing both by trying new concepts and catering to customers who want to purchase high-end merchandise at a discount. If these concepts prove successful, other thrift stores may have to consider making similar changes.

Photo courtesy of Mike Mozart at Flickr.com

]]>A drop in disposable income among middle-class Americans created a squeeze for national retailers from 2007 to 2013. Despite good news with regard to 2014 holiday hiring, lower gas prices and better entry-level pay, middle-class spending dropped due to increased expenses and stagnant wages from 2000 to 2012.

A 2015 report from the Center for American Progress shows middle-class spending decreased by an average of $5,500 per family because the costs of basic needs increased from 2000 to 2012. Adjusting for inflation, the prices of education, health care, housing and retirement decreased disposable income for middle-class workers. That left less money for retail goods such as furniture, appliances and clothing.

The richest Americans, or the top 1 percent, cannot carry the retail industry forward because the rich tend to save more and invest disposable income in other places. The top earners in America saw their income increase 15 percent from 2009 to 2013, and higher-end retailers that cater to the needs of the richest Americans did well following the recession. However, smaller percentages of income gains for the rich go toward retail shopping as compared to middle-class spending.

As much as 76 percent of income growth went to the top 1 percent of earners. That does not leave much for the average retail shopper who frequents Wal-Mart, Target, Gap and local shopping malls. If middle-class income had grown at the same pace as those of the wealthiest Americans from 2009 to 2011, an extra $45 billion of disposable income would have been in the hands of the biggest spenders in the consumer-based economy. Some companies appear to have realized this fact, as firms such as Wal-Mart and Target increased their entry-level wages to $9 per hour in the spring of 2015.

Raising wages helps, but Americans must have more take-home pay and less of a tax burden. Student loan debt has also squeezed middle-class spending, and fair-labor standards can help raise the spending profile of 60 percent of Americans. These measures may help increase core retail sales to pre-recession levels in 2006. As of February 2015, core retail sales per person were still 14 percent lower than in 2006, despite stock market gains and more money in the hands of the wealthiest people.

The future of retailing involves catering to middle-class spending with more personalization, better technology and more convenience for savvy shoppers. Retailers can connect with shoppers using mobile apps, targeted advertising and better deals. Data mining and predictive software can anticipate the needs of shoppers, but wages remain the key to better economic forecasts. Income for ordinary Americans must increase in order for workers to be able to spend more at national retailers that rely on steady streams of revenue from millions of people.

The middle class, and not the rich, are the ones who can move the consumer-based economy forward. Until a mixture of private and public initiatives helps to ease the burden of ordinary Americans and improve middle-class spending, growth may occur as fast as investors want.

Photo courtesy of epSos .de at Flickr.com

]]>Fashion trucks — mobile boutiques that sell trendy fashion products from the backs of trucks — have taken over more American city streets in recent years. These trucks started on the West Coast but have since moved eastward to other municipalities. Fashionistas may see even more of these retailers in 2015.

Some fashion trucks have racks of clothes on hangers to one side with display shelves on the opposite side. Toward the front of the truck sit one or two dressing rooms with curtains or doors for privacy. To save space, some items, such as handbags, purses and makeup kits, are placed above racks of hangers. Drawers below the display cases store more accessories. Truck interiors are well-lit so that customers can see what they look like, and truck interiors must be tall enough to let people stand comfortably with plenty of head room. Other vehicles have windows to let in natural light.

Three fashion trucks are scheduled to make stops in the Detroit area during warmer months of 2015. Sloan Street Style hit the streets in 2014, and Katherine Campau's truck returns for 2015. Instead of a brick-and-mortar store, Campau found a more affordable option with a truck. Madison Boutique started online, but customers wanted a tangible shopping choice in order to see clothing before buying it. Nikki Mattison's pink truck used to be a flower delivery truck, and a year after her truck opened, she created a storefront. Angelic Soaps & Gifts sells homemade soaps by Dieshawn Holmes. Holmes' truck carries more than 200 bars of soap at a time, along with lip balms, lotions, jewelry and accessories.

Fashion trends continue to become more mobile and more high-tech. Couture shops connect with customers using social media, Skype and smartphone apps. Customers can view inventory and schedules with mobile alerts, Facebook updates and Twitter posts. Bluetooth-based security systems can help store and truck owners prevent theft during busy times. Fashion trucks represent one more way to bring products directly to the consumer.

A dedicated website called FashionTruckFinder.com lets potential customers find fashion trucks by region, product and events. Some trucks sell clothes from top designers, while others focus on threads made by independent local designers. Some trucks are converted campers or old recreational vehicles, while others are former passenger vans with seats removed.

Fashion trucks represent one new way retailers have adapted to what customers want. These retailers combine small, mobile stores with online inventories to deliver products to people who love convenience.

Photo courtesy of Chris Martin at Flickr.com

]]>When it comes to retail expansion, industry giants such as Wal-Mart and Target have a lot to learn. Wal-Mart abandoned its retail expansion plan nine years after entering Germany, while Target pulled out of Canada a mere two years after entering the country's retail landscape. Ikea, on the other hand, has excelled at global expansion. Here is what other retailers can learn from Ikea's success.

Ikea tends to succeed at retail expansion because the company does a lot of research before it decides to enter a new market. Some companies in the retail industry are too aggressive about moving into new territories, causing executives to make serious mistakes when making expansion plans. In one case, Ikea studied nearly 9,000 people to learn more about their morning routines. Based on the results of this research, the company introduced new products.

In-depth research might have saved Target from its failed retail expansion efforts in Canada. Instead of researching consumer behavior or local customs, the retailer opened 124 Canadian stores in just one year. Executives ignored the fact that Canada has stricter business regulations and slower economic growth than the United States. Had Target appointed a Canadian executive instead of relying on growth projections forecast by American executives, the company might have been able to avoid these problems.

Wal-Mart made a similar blunder when it tried to break into the German market, but the consequences were a little different. Executives failed to recognize the pro-labor views held by many German citizens. In the United States, it's not unusual to hear Wal-Mart workers performing the company chant or greeting customers with enthusiasm, but these practices aren't common in Germany. Wal-Mart executives tried to make headway, but they had to give up their retail expansion plans after nine years of hard work.

At Ikea, executives are also smart about pricing merchandise, which is perhaps why the retailer can offer employees such good wages. The company's team is always looking for ways to save money on manufacturing so that Ikea does not have to charge as much as its competitors. In 2014, the company reduced its prices by 1 percent, giving shoppers even more of a reason to visit their local stores. One of Target's biggest mistakes was charging Canadian customers more for products that could be purchased for less money in the United States.

Price also played a role in ruining Wal-Mart's retail expansion plans in Germany. In 2003, the retailer had to raise prices on basic items due to a ruling by Germany's highest court. The court ruled that Wal-Mart's pricing strategy undermined competition. As a result, Wal-Mart could no longer compete on price, forcing the company to abandon its expansion efforts in the country.

Most companies in the retail industry see global expansion as a way to increase revenue, but failing to create a foothold in a new country is very costly. Companies interested in retail expansion should research potential markets thoroughly and follow Ikea's lead when it comes to developing pricing strategies.

Photo courtesy of Stuart Miles at FreeDigitalPhotos.net

]]>If toy companies have their way, 2015 may be the year of the drone with several new offerings of toy drones in the works based on the popular quadcopter design. Drone technology for commercial use has trickled down into the private, hobbyist sector now that designs have become more affordable for everyday use.

Enthusiasts at the 2015 London Toy Fair noted more toy drones on display than in years' past. Some drones respond to voice commands, while others blast water at enemies for a high-tech water fight. Other models have control systems using smartphones, which means longer flight times when compared to other battery-operated, remote-control vehicles. Smartphone controls also allow greater flying distances away from the controller.

Companies such as Bladez Toyz saw demand for toy drones increase 450 percent from 2013 to 2015. Flying Toys' new drone model has increased turnover by 700 percent in just the first three months of 2015. Both firms seized on the quadcopter design, which contains four propellers on each toy rather than a traditional helicopter format. Quadcopters have more stable configurations and feature easier controls.

The toy industry also realized price reductions thanks to the popularity of noncommercial uses. Amazon's potential drone delivery system, combined with smartphone technology already in place, made the hobby more affordable. Instead of fancy toy drones that cost around $450, prices for 2015 models are one-third to one-sixth that amount, somewhere between $75 and $150.

Unique toy drones present families with a wide variety of options. Some toys have HD cameras so people can record their flight. Other, ground-based drones climb walls. A water-blasting drone makes water fights and hot summer days more interesting. Some drones fit in the palm of a human hand, while fancier models carry special payloads.

Huge corporations and the U.S. government no longer own the market on drone technology. All of these toys fit under the Federal Aviation Administration's guidelines that stipulate drones must weigh less than 55 pounds and remain within sight of the controller at all times. What started as a business opportunity for Amazon's ultra-fast product delivery has become the next big thing to jump-start toy sales as warmer weather approaches. Although none of these drones can fly themselves, toy manufacturers have rushed to meet demand for kids and adults.

Military drones gained headlines during the wars in Iraq and Afghanistan, and over the next decade of development, the technology became affordable to everyday consumers. Much like cellphones, flat screen televisions and Blu-ray discs, drones will continue to drop in price as competition heats up.

Toy drones represent a fast-growing segment of the industry. Battery life has been extended for longer flight times, and many toys have already-made remote controls thanks to smartphone apps. Toy companies can now focus on packing more cool stuff into drones just in time for the 2015 winter holidays.

Photo courtesy of bplanet at FreeDigitalPhotos.net

]]>The retail industry has changed markedly since 2010. More consumers love the convenience of shopping anytime, anywhere and at any store thanks to increased shopping technology such as smartphone apps, social media websites and online security. Now that companies deliver convenience, customer expectations of retailers have changed.

Accenture's 2015 Global Consumer Pulse Research survey shows customers are 29 percent more likely to change companies in 2015 than they were in 2010. This so-called switching economy means $1.6 trillion in sales is up for grabs, and companies that cater to customer expectations of digital, mobile and social media technology may win the day. People that switch companies sway consumer spending patterns, change market forces and demand more shopping technology to make consumer spending easier.

Large companies can no longer afford to be complacent. The survey indicates as many as 56 percent of shoppers have increased the number of brands they consider buying. Repeat customers may be harder to retain if they can find a better deal, smarter bargain or greater value with another company. Searching for products and services online allows consumers to instantly compare prices, shipping costs and product specifications. Simply price matching from another company may not be enough to keep customers coming back again and again.

Customer loyalty must be earned by offering unique, personal products found nowhere else. Shopping technology shows retailers can tailor coupons, discounts and customer loyalty to personalized needs. Sending out a $50-off coupon for a television means nothing to someone interested in less expensive baby clothes. Customized smartphone apps help track product preferences, provide special offers and even help greeters as someone walks into a store.

Retail stores must sync online and physical marketplaces. If someone buys a product online, companies need to make sure the item can be returned to a physical store. Returns to a purely online retailer should be painless. Brick-and-mortar stores could have contemporary, up-to-date websites even if no products get sold online. Websites and social media mark great ways for customers to get in touch with a retailer's service department even if the business only sells products in a physical store. Shopping technology revolves around having specific policies in place so stores can adapt quickly to consumer demands.

Firms should be proactive in their dealings with customers and competition. Reward customers who take surveys with discounts, contests or buy one, get one offers. Discover what the competition does well and adapt quickly to seize on what another company lacks.

Executives and owners should watch how shopping technology has changed over the previous five years to note trends moving forward. Businesses must adapt to competitors quickly, otherwise they may suffer the same fate as Montgomery Ward, Radio Shack and Blockbuster Video. Prices reflect quality and value rather than having the least expensive product out there. When executives consider shipping and logistics, even small businesses can have a global presence thanks to websites and connectivity.

Shopping technology has changed the consumer-based economy from supply chains to 3-D printing and smartphone apps. Companies that note changes and those that adapt the quickest earn the most profits in the switching economy.

Photo courtesy of StormKatt at Flickr.com

]]>E-commerce is a vital part of most retail operations, and creating a positive e-commerce experience is essential to boosting sales and retaining customers. Brick-and-mortar stores encourage customers to persevere through minor difficulties because of the inconvenience of driving to another store. Switching stores online is all to easy, making a near perfect customer experience top priority for your brand. Check out these tips for improving the customer's e-commerce experience to increase online sales.

Keep It Simple

As many as 67 percent of all online shoppers abandon their shopping carts without making a purchase. A significant portion of those who shop and drop leave because of glitches in the e-commerce experience. Avoid losing your customers by keeping the checkout process simple. Keep the number of steps to a minimum, and use autofill to transfer information whenever possible. Let customers know how many steps are left, and guide them through the process to keep it flowing smoothly. Keep error messages to the point, and make sure that it's easy to fix errors. No one wants to re-enter a page full of information because of a minor error in one field.

Provide Plenty of Information

Avoid making your customers search for information. A smooth e-commerce experience starts with an easy-to-navigate website. Provide a list of your accepted payment types on every page. Create large buttons that are easy to find, and clearly label them. Although a beautiful website immediately grabs the shopper's attention, easy-to-find details are essential for making the sale. Provide product information that is visually appealing but also useful. Choose simple, easy-to-read fonts, and make sure to cover the essentials. Carefully monitor user questions, and update your data so that commonly requested information is there and easy to find. Remember that every person who asks for more information probably represents hundreds of other users with the same questions who simply left the site without bothering to send a request.Be Mobile-Friendly

Mobile shopping is a growing trend, so be ready for the future by ensuring that customers have a smooth e-commerce experience regardless of the device used to access your site. Increase online sales by creating a website with a mobile-responsive design. Mobile-responsive sites change their size and look depending on the screen resolution of the device used. Keep buttons large and easy to click with a finger or stylus, and require only a minimal amount of text input. Integrated buttons for PayPal and other payment methods further eases checkout.

Test Drive the Process

Recruit family and friends to buy products at your site to make sure everything goes smoothly. While you're at it, make a couple of purchases yourself. Completing the entire checkout process is the best way to look for problems firsthand. Make sure that your test drivers use a variety of devices and payment methods, and encourage both positive and negative feedback to help you make improvements.

Employing these tips help you keep purchases flowing by providing a smooth e-commerce experience for your online shoppers. A streamlined checkout process, ready access to needed information and mobile-friendly layouts decrease abandoned shopping carts and improve sales numbers. Personally use your site on a regular basis, and work for continuous improvement to retain customers.

Photo courtesy of Victor Habbick at FreeDigitalPhotos.net

]]>Mattel's newest version of Hello Barbie just got smarter. The toymaker announced in February 2015 that the doll can talk to a child and have potentially intelligent conversations. The technology works by recording someone's voice, transmitting the conversation to a cloud-based computer service and responding appropriately.

The computer program, called ToyTalk, analyzes what a child says and generates a response. The more someone talks to the new Hello Barbie, the more the doll learns with regard to speech recognition and artificial intelligence algorithms. If the technology works, a fully interactive doll for girls could be on store shelves by Christmas.

One huge caveat comes with the Hello Barbie design. The terms of service and privacy policy of ToyTalk state that any conversations recorded on the toy are shared with third-party vendors, and any speech recorded by the device may also be used for research purposes. Children often share private thoughts and fears with their dolls, and sometimes these conversations happen away from adults. Do parents want their children's privacy to be potentially invaded by this technology?

U.S. law may not provide any protection for consumers because the terms of service spell out precisely what occurs when someone opens the toy, presses the microphone button and begins to speak. Even if parents read the terms of service on Hello Barbie and understand what the legal language says, it doesn't necessarily follow that adults understand the ramifications of what they agree to when they push play.

What happens when and if the new Hello Barbie records a conversation that could be incriminating? Can a court system subpoena ToyTalk to hand over the voice recording? How long does the company maintain the recordings of a child's voice? Should ToyTalk employees be held liable if they hear of potential child abuse and do not notify the authorities? The questions surrounding children's privacy come about thanks to the murky field of informed consent.

State laws regarding evidence recorded electronically differ from jurisdiction to jurisdiction. If the doll is in one state, but the physical recording is in another, which state laws apply if criminal activity gets recorded? Can the U.S. Federal Trade Commission insist on stricter labeling of such toys in the future?

Perhaps parents would be happier with the newest version of GoldieBlox, the math-based engineering genius, for winter holiday shopping instead of Barbie. Mattel no longer dominates the market like it used to, and GoldieBlox represents a doll that encourages a child's critical thinking skills. Parents can buy a talking doll, but perhaps one that is not as artificially intelligent as the new Mattel design.

Mattel is taking a huge gamble with its new Hello Barbie doll. Talking dolls are great because they provide children with hours of entertainment having seemingly nonsensical conversations with their toys. However, giving someone else access to a child's innermost thoughts and feelings may be a bit much for some parents.

Photo courtesy of artur84 at FreeDigitalPhotos.net

]]>Gender-neutral clothing is in fashion, at least according to the British department store Selfridges, which recently opened a three-story pop-up shop completely dedicated to clothing that can be worn by men, women and those who don't fit into either camp. This new store, named Agender, is just one example of big brands starting to offer gender-neutral clothing in recent years.

The Agender store casts off the traditional practice of segmenting a clothing store into sections for men and women. With the help of interior designer Faye Toogood, Selfridges has completely moved away from the traditional store layout, rejecting gender-specific section signs and instead creating a store where all areas are designed for all customers.

Although Agender is making a big splash, it's not the only example of a big brand embracing gender-neutral clothing. Gucci, Prada, Givenchy and YSL have also experimented with gender-neutral clothing collections. All four of these fashion houses used a mixture of male and female models when advertising their collections, which are aimed at all genders.

American Apparel also plans to feature more gender-neutral clothing. The brand already offers many items, such as jackets and hoodies, that appeal to both men and women. American Apparel's Cynthia Erland, who is senior vice president of marketing, claims that the brand's customers have been ignoring gender fashion rules for a long time. "Our customers have always been doing this," she says.

The demand for gender-neutral clothing is growing, as young people cast off the shackles of traditional gender roles and embrace a more androgynous style. In addition, a growing number of transgender people and people who reject the traditional gender binary are demanding clothes that better allow them to express their identities through their clothing.

Fabio Costa is a Brazilian fashion designer who has long experimented with breaking the traditional gender fashion rules, from braving threats in order to wear skirts and dresses in high school to developing his own gender-neutral clothing line. Costa strongly believes that gender-neutral clothing is the future of fashion. "Times are different," he says, "and therefore fashion needs to be as well."

Costa's clothing line is called NotEqual. It offers high fashion pieces that are new and exciting, but the prices aren't exactly accessible to the mass market. A single unisex wool tunic costs $370. Selfridges' Agender brand is similarly high priced, implying that, for the time being at least, gender-neutral clothing is likely to only be accessible to high-end consumers.

However, some designers are adamant that gender-neutral clothing is the future of fashion. Fabio Costa believes that "soon, we might see a genderless fashion week."

Until recently, gender-neutral clothing was restricted to specialist boutiques. Now that big brands are starting to embrace this new unisex style, gender-neutral clothing could soon become a much more common sight in mainstream clothing stores.

Photo courtesy of Vlado at FreeDigitalPhotos.net

]]>L.L.Bean has decided to follow the same strategy as Wal-Mart as it moves its brand forward. The outdoor retailer announced that it will focus on building smaller stores rather than huge shopping destinations. The move comes as the camping retailer strides into the digital age by offering the convenience of in-store pickup of catalog items.

The Maine-based chain's decision runs counter to what Bass Pro Shops and Cabela's are doing. L.L.Bean plans to open stores of around 15,000 square feet, with a quarter of the area set aside for outdoor equipment. A dedicated portion of each new space will include an outdoor discovery school for classes to show off products and provide camping skills demonstrations.

L.L.Bean's competitors have recently created huge megastores with destination shopping concepts. Bass Pro Shops is working on high-profile projects such as the pyramid in Memphis, a structure the retailer is converting from a basketball arena to a megastore. Other Bass Pro Shops buildings come with a huge lake to showcase fishing boats. Meanwhile, L.L.Bean has decided that a better strategy revolves around creating smaller stores in more areas to introduce new generations of customers to the brand.

Smaller spaces provide a retail location to allow customers to find basic products that sell easily, but these stores also serve as catalog outlets that allow customers to pick up items bought online. The idea is to have a place every customer enjoys, whether they like to shop in person, online, by mobile app or through a paper catalog.

The outdoor classroom idea is designed to bring in customers who otherwise would not enter an L.L.Bean store. Camping experts and outdoor enthusiasts can meet in a place geared towards the event or class they need. A community gathering space provides an alternative method of advertising simply by getting potential customers inside the retail space.

The shift in strategy is a change from 15 years ago when L.L.Bean opened huge stores. The first store outside of Maine opened in McLean, Virginia, as part of the Tysons Corner Center mall. That store provided a lot of merchandise, but not all of its products sold well. Those large outlets were opened before Internet shopping became the norm, so the change in consumer habits is part of what has fuelled the chain's decision to go for smaller spaces for convenience and cost effectiveness.

The outdoor retailer's move comes just months after Wal-Mart announced sales at its Supercenter stores had declined, while sales as Neighborhood Markets increased in the second quarter of 2014. Instead of building more huge stores, Wal-Mart plans to open retail spaces just one-fifth the size of Supercenters. These supermarkets will provide basic necessities in city centers or small suburbs giving quick and easy grocery shopping to a new range of customers with the same low prices as other Wal-Mart outlets.

When shopping apps and online catalogs let shoppers purchase items online, it makes sense to have free shipping to stores for customers to pick up items. L.L.Bean may have the right idea since smaller outlets mean customers can try on items and be sure of the fit even if they then buy different styles from the website.

Photo courtesy of Mike Mozart at Flickr.com

]]>A traditional grocery store stands out by offering convenient hours, unique selections and excellent customer service. Other supermarkets go to more extraordinary lengths to make an impression on customers, such as creating unique store displays or incorporating new retail technology.

Supermarkets that combine convenience, low prices and automation keep costs down over time while dynamic displays in a grocery store specialize in interaction. A few stores focus on whimsical and memorable art-type displays that serve as huge advertisements with the entire store space as a canvas.

In South Korea, one grocery store is located on a subway train car so commuters can shop on the way to and from work. Supermarkets such as this exemplify convenience when workers do not have time to purchase food otherwise. The subway car has a meat counter complete with a cash register to take orders. Since customers have little to do on a subway, this allows them to make the most of their commute.

A grocery store in Romania saves on cooling costs by making the entire store out of ice blocks. The popular chain uses 80 metric tons of ice blocks over an area of 1,600 square feet to keep the place cold. Some foods such as wine and frozen meals get stored inside the ice blocks themselves for a unique display.

Retail technology comes in the form of wireless displays, flat-screen advertisements and radio frequency tags. Phillips has created a lighting system that works with a smartphone to direct shoppers to a particular shelf. A mobile app locates the quickest route to find milk, peanut butter and frozen pizza. The app then communicates with an in-store lighting system made of mini LED bulbs that point shoppers in the right direction. The map and lighting system reduce the time a customer spends searches for products.

Digital tags on grocery store shelves are more prominent as this technology becomes more cost effective. Small LED displays on shelves reduce staff time needed to remove old tags, place new ones, check inventory and compare bar codes. Sale prices change automatically when connected to a computer system, and price checks become things of the past.

Vending machines have evolved to include many different types of products. One grocery chain has created a vending machine with necessities such as milk, eggs and bread. Another virtual reality vending kiosk mimics a store shelf by interacting with customers using a touch screen. People can scroll through selections on the screen, tap the drink they want and call up nutrition information before placing an order. After payment, the drink dispenses. Combine this kiosk with smartphone technology, and people can get a drink before reaching the actual vending machine.

A grocery store may not seem like a place for advanced technology. However, the true test of automation and cost savings in retail includes how customers respond to innovations on supermarket shelves. Stores now combine in-store technology with customization and better supply chains to lower costs.

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]]>With the continued growth of digital technology and online merchandising, 2015 brings several retail trends likely to influence shopping habits. From Bluetooth capable in-store beacons to a dynamic growth of online retailers offering quality service and extensive product lines, retail trends are changing the way people shop. Check out these latest trends and how they are likely to influence shopping behaviors into the future.

Beacons

Beacons are integrated digital sensors that retailers place on shelves, displays and product signs to encourage customer interaction through the customer's mobile device. Low-strength Bluetooth signals provide customers with product information, discounts and even no-wait payment choices to improve the shopping experience. Beacons are inexpensive, battery-operated devices that use a minimal amount of energy and require no new wiring, making them a great choice for retailers looking to provide low-cost connectivity.

Better Use of Big Data

Big data systems collect information on browsers, shoppers and buyers and turn that information into a personalized shopping experience. Expect future retailers to provide the exact information you need when you need it. Among emerging retail trends is the use of big data before a store even opens. Advanced shopping analytics gives retailers a picture of the local shopping habits. This helps with stock selection, hours and even designing the physical space of the store interior. Custom shops draw in savvy shoppers who expect personalized service at all levels.

More Digital Choices

The days of Amazon being the first online retailer shoppers turn to may be numbered. Other retailers, such as Walmart, Target and Costco, are growing their online shopping sites with better product selections and faster customer service. Ship-to-store service reduces or removes shipping costs, drawing in customers who balk at paying extra shipping and handling fees. Foreign mass-market retailers, such as Alibaba, are also looking to draw in U.S. shoppers. Watch for even more digital shopping choices in the future as this retail trend takes off.

Fewer Brick and Mortar Choices

While digital shopping options grow, more and more brick and mortar stores are closing. The retail trend is to reduce the number of physical shopping outlets to keep businesses strong in the digital age. Shoppers need to drive farther to shop in person at their favorite retailers, and future stores are likely to be smaller with reduced inventories.

Perks

On the other hand, although physical stores are becoming fewer in number and smaller in product selection, they are offering more perks than ever. Expect the store of the future to provide more sampling, such as free food or beverages; interactive displays; and more attention from salespeople. The addition of beverage kiosks and other add-on services are a way to draw in shoppers and keep them coming back. Contemporary shoppers want a shopping experience that is entertaining, and savvy retailers are incorporating entertainment options to meet those needs.

As technology changes the way people shop, retailers look for new ways to interact with their customers. Retail trends, such as Bluetooth beacons, shopping analytics and a variety of new perks, help retailers stay competitive and draw in new business. Look for more online shopping options and more personalized in-store service continuing into the 2020s.

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]]>By early 2015, drone technology had advanced to the point that commercial enterprises were using small, remote-piloted aircraft for aerial photographs, overhead inspections and ground-use surveys. When the Federal Aviation Administration issued its first set of rules for drones in February 2015, other countries quickly followed suit.

Amazon wants to use automated drone technology to deliver lightweight packages to customers faster. The initial set of FAA regulations states drones must remain within sight of their pilots at all times, which means using them in not feasible over American airspace by 2017. Indian regulators saw an opportunity and began devising standards for drone use after the online retailer said in December 2014 it planned to test drones in India.

The move reverses a ban on commercial, private drones in India enacted two months before Amazon's announcement. The reason India initially did this is because the International Civil Aviation Organization had not written any regulations on drone usage. Countries such as the United States, Australia and New Zealand created rules for drones on their own, and Indian regulators with the country's Directorate General of Civil Aviation plan to move forward with their own set of rules for drones in a two-month time frame.

Amazon plans to launch drones in Mumbai and Bangalore using its Prime Air service. When the United States spurned large-scale, automated drone usage until safety issues were resolved, Amazon needed to test its technology elsewhere. The crowded streets of two huge urban metropolises in India provide a perfect proving ground for Amazon's delivery system. A pizza was delivered along a crowded street in Mumbai in May 2014, so lightweight packages would seem to be the next in line for drone deliveries. If Amazon's packages can make it through crowds of millions of people, high-crime areas and urban slums, CEO Jeff Bezos can take his case to the FAA for approval.

India's regulatory authority hopes to make applying for drone permits relatively easy with online registration, minimal paperwork and practical licensing. The agency notes it cannot do so and also adopt the strict policies of countries that already have drone rules in place to ensure national security. The concerns of the Indian government leading to drone bans may have revolved around terrorists potentially using drones. However, the opportunity to have a corporation such as Amazon use India as a test site caused regulators to think twice about restricting drone technology to military applications.

The FAA took a cautious approach to developing its rules for civilian airspace. The agency ignored deadlines to approve drone rules as far back as 2011. Amazon balked at the domestic ban and took its testing overseas. The company's success in India could later advance drone adoption in the United States.

Drone technology has already become a part of everyday conversations in America. Widespread use of drones may become a reality in 2017 when new rules go into effect. Look for 2018 to be the year of the drone after companies, researchers and universities apply for drone permits.

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]]>National retailers competing with Amazon have realized that the customer experience in brick-and-mortar stores must incorporate the ease of online shopping. Many stores such as Walmart, Staples, Best Buy and Target allow shoppers to purchase items on their websites and pick them up at local outlets with no shipping costs.

Retailers now use stores as fulfillment centers as a growing source of business in addition to traditional sales at their retail locations. If a specific store does not have an item in stock, customers can find it online and have it sent to the store within 24 hours in some cases. Retailers let customers reserve and pay for an item over the Internet and pick it up later in the day. These types of online shopping experiences combine the convenience of shopping from home and the comfort of being able to get merchandise that same day.

The beauty of store pick-up goes beyond at-home, 24-hour shopping convenience. Checkout lines on Black Friday become shorter as shoppers find better bargains online compared to in-store deals. Online promotions keep prices lower so brick-and-mortar locations can compete with less expensive items on Amazon. The online shopping experience within Walmart is even more favorable for shoppers considering the retail giant's Supercenters stay open 24 hours. That means customers can walk in at any time to pick up the goods they bought on Walmart.com.

If there are issues with any items, customers enjoy the convenience of returning them to a physical store rather than going through the hassle of packing them back into a box, shipping them and waiting for a response. Online stores may offer free shipping with no sales tax, but if a package is broken or includes the wrong item, the customer's recourse starts with calling a toll-free number rather than seeing a live person to get a refund immediately. The value of store pick-up to shoppers may in many cases neutralize the convenience of online shopping.

Some stores allow customers to view inventory currently on the shelves. Shoppers pick items they know are already in a store, pay for them online, and then pick up their merchandise later in the day at the outlet. Other retailers offer to ship items between stores for free for added convenience.

National retailers take advantage of logistics and shipping companies they are already using. To compete with online shopping juggernauts such as Amazon, stores rely on the huge volume of business shipping between brick-and-mortar locations giving packing companies an incentive to lower rates. Everyone wins in this scenario, and everyone stays busy as retail outlets become pack-and-ship locations in addition to places where people buy merchandise at registers. Retailers that adapt to the needs of shopper convenience win, and those that do not will lose revenue and market share.

Online shopping has revolutionized American consumerism thanks to the rise of Amazon, e-commerce and the Internet. However, brick-and-mortar stores have found allowing customers to purchase online and pick up in-store is a key way to compete and remain relevant in a world where every dollar shows up on quarterly revenue reports that make or break stock prices.

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]]>Vaunted national retailer J.C. Penney rebounded in late 2014, and the chain looks to continue this momentum in 2015 by combining new marketing strategies with its tried-and-true selling concepts that worked in the past. Traditional department store sales, combined with online shopping and the company's home store concept, should rejuvenate the brand.

Noted Forbes columnist Walter Loeb sees a lot of potential for J.C. Penney in 2015 after dismal sales figures in 2013 and the early part of 2014. Fourth quarter sales in 2014, helped in part by lower gas prices and better holiday shopping, increased 4.4 percent for the retailer. That growth pattern beat Kohl's, Macy's, Target and Walmart for the same time period. Revenue came in at $13 billion, which is not quite up to the $17 billion in sales it had before former CEO Ron Johnson took the helm and disinherited customers who trusted the brand.

Loeb feels loyal customers came back to stores partially because J.C. Penney returned to its roots. Instead of hip, younger brands, the retailer retained traditional clothing names such as Levi's, Nike and Izod. Disney and Modern Bride signed deals with the chain to help attract young customers while maintaining a solid repeat customer base. Store newness brings more customers back, and excitement about the brand has returned. The retailer jettisoned 14 vendors that did not fit into the store's plans.

Both the recovery and return to prominence of J.C. Penney were in doubt for two years. Stock prices slid as much as 75 percent in 2013, 33 stores closed in 2014 and 2,000 people were laid off. The board made a shrewd move when it hired back its former CEO, and the turnaround beat industry analysts who feared the department store would close altogether.

Johnson, whose tenure with the company lasted just 17 months, got rid of in-store discounts and coupons that customers loved. Johnson brought in higher-end merchandise that sat alongside the store's own brand. CEO Mike Ullman, Johnson's predecessor and successor, took over and made things right again. The huge catalog is back for 2015, and the home store is included this time. Shoppers can pick up paper copies of the huge catalog in stores or browse its pages online. Traditional customers who love the feel of the physical tome are happy, while younger customers can see it on the company website.

Consumers can buy items on the J.C. Penney website and have them shipped to a store for free, a feature found at many other retail stores. Internet sales increased 12.5 percent in the fourth quarter of 2014, outdoing the overall net sales increase of 2.9 percent. The department store started its website in 1995, long before many competitors decided to enter the digital age of online shopping. The chain was forward-thinking back then, and recent sales increases show the retailer can still reap profits from younger consumers while keeping its traditional base happy.

Rumors of the demise of J.C. Penney may have been greatly exaggerated, but success is far from assured. Stock prices peaked above $42.50 in February 2012 before falling to $5.51 two years later; prices hovered around $8 per share in February 2015. The revamped catalog may spur sales until the bellwether holiday shopping season returns.

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]]>Barnes & Noble, the brick-and-mortar bookseller that has been competing with Amazon for market share, announced in late February 2015 that it was creating an entirely new company for its college bookstore push. This move follows an announcement in August 2014 when the bookseller announced it would spinoff its Nook division into a separate entity, but the project was terminated in December 2014.

The aim of this strategy from Barnes & Noble is to expand its reach into a different market. Instead of one bookseller, investors can buy stock in two separate companies — one for retail stores and another that specializes in college textbooks on campuses. The company plans to raise more than $775 million in capital through an initial public offering for the new business.

The company, titled Barnes & Noble Education, will distribute some of its take to current shareholders. The bookseller acquired this division in 2009 from Leonard Riggio, and has stores on 714 college campuses reaching nearly one-quarter of all college students in the United States. Unlike retail locations that have lower sales due to e-books, the college bookstore continues to be a vibrant place for traditional books. Stores that focus on higher education have done better in same-store sales than retail locations from 2013 to 2014.

Barnes & Noble recognized the possible revenue stream on college campuses as a way to diversify its holdings. Campus stores have more than just books for students. Students can stop at the store and grab a sandwich or coffee in between classes. These entities also sell merchandise, apparel and gear with college logos on it. Bookstores on college campuses can sign deals with universities to provide discounts at certain times or on particular items. If the bookseller delivers quality for higher education, colleges can sign exclusive contracts to make Barnes & Noble the sole proprietor on campus in return for certain financial benefits.

The ailing book retailer announced in August 2014 that it would create a new company for its Nook division, but the idea changed when Microsoft ended its partnership with the Nook. Spinning off the Nook was seen as a way for the bookseller to compete with the Amazon Kindle and other e-book readers that have made brick-and-mortar stores less attractive to everyday consumers. Lagging sales in most of its stores caused the national retailer to rethink its strategy for its 600 locations. Instead, college campuses may see a new man on campus. The future of the Nook remains to be seen.

Barnes & Noble is trying to regain its luster from the 1990s when the bookstore giant expanded into new territory and displaced the competition. The bookseller faces a new threat, and CEO Michael Huseby sees college stores as his company's salvation for the time being.

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]]>Despite the fact that the typical company receives only a small fraction of its total e-commerce revenue from shoppers on smartphones and other mobile devices, mobile apps intended to boost sales are here to stay. The fact that sales of mobile devices will take over laptop and desktop computing devices by 2017 means retailers must find relevant apps now or risk being left behind in the future.

Mobile apps tailored to a company's specific needs have several advantages over a website. Apps can use a smartphone's GPS system to help consumers make location-based choices. Scanners and cameras on smartphones act as information portals in stores. Companies can send customized text messages based on information stored in the app, thereby increasing retail sales. A firm's e-commerce app can be made into a finely tuned machine that fosters brand engagement, but only if the technology is made properly.

Mobile apps must be available on multiple devices, platforms and websites, and retailers must have their app on as many websites as possible. In the summer of 2014, more than 1.3 million apps were available on the Google Play store for Android devices, while 1.2 million apps were on Apple's store. Windows, Amazon and Blackberry also have stores for programming on their devices. There are plenty of marketplaces for companies to place an app for downloading, and new choices appear every week. These bits of programming account for just 15 percent of the overall online sales market, but that portion of retail sales will continue to climb as more mobile devices are sold.

Companies must create apps relevant to their own customer relationship management system. Do mobile apps integrate sales, marketing, tech support and customer service into one convenient piece of technology? How well can customers engage with a company based on the app's interface? Beacons in stores and timely text messages combine to make customers notice that an app is a necessary part of shopping. For example, coupon specials or sales can be exclusive to certain apps as opposed to becoming store-wide sales announced in flyers. Once customers use the app more often, firms can expand their use to capture more market share and greater revenue streams from repeat customers.

Users are more engaged with apps that have unique discounts found nowhere else, link directly to customer support and allow customers to check stock and inventory at a particular location. Interactive apps are more successful than static programming when it comes to keeping customers' attention. When information in a store changes, so should an app. When a particular dress goes from 30 in stock to less than 10, customers looking for that specific item need to know. Subscribers crave exclusive content that makes them feel special when they interact with their favorite outlet. Apps must provide value to customers to make them want to return to a store again and again.

Mobile apps are here to stay, thanks to a new generation of shoppers who crave smaller, faster and better computing devices. Retailers that provide relevant, interactive experiences for customers are already ahead of the game, especially since repeat business forms a large part of a customer base.

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]]>Wal-Mart Stores Inc. plans to raise the minimum wage the company pays its employees to $9 per hour by April 2015, and the wage goes to $10 per hour a year later. The move signals changes in retail salaries and the labor market as retailers move forward from the recession of 2007.

Walmart's new wage rate is 38 percent higher than the federal minimum wage of $7.25 per hour. The move will cost the retail giant $1 billion, even when other companies have cited competition in the labor market as a way to raise retail salaries for entry-level employees. Walmart's move forces other retailers to try to follow suit in order to keep workers. Part-time employees who need more money may shift to the national chain as wages increase versus other stores.

Companies such as Aetna, Starbucks and Gap raised their lowest hourly wages in 2014 and early 2015. Panera Bread also said it would jump in on the wage war to maintain its talent pool. These other companies do not have the same clout as Walmart. In terms of retail salaries, workers have protested the retailer's labor situation for years. Every Black Friday since 2010 brought louder and more high-profile protests over Walmart's labor practices, especially during the recession that saw rising unemployment but stagnant wages. Now the company plans to clean up its image.

Walmart continues to try to curb costs to remain competitive with retail salaries. The giant cut health insurance for some 30,000 part-time employees while raising insurance premiums for others. Some economists feel the boost in wages will be negligible because so many other retailers have already pushed for higher salaries, but Walmart is the largest employer in 25 states and the largest employer overall in the United States.

The move brings more spending money to 500,000 employees. If each employee works a minimum of 20 hours per week, that's an extra $35 due to the raise for $1.75 per hour. That means a huge labor pool just received an extra $17.5 million in spending money every week. Those employees are consumers with more money to spend. Add an employee discount at Walmart stores, and the retail giant has just created its own stimulus package. A boost in retail salaries keeps loyal employees, and it also increases a retailer's own bottom line.

Retailers continue to evolve in order to save money. Higher salaries mean companies must have greater revenue on hand to reinvest in employees, a condition that was not possible until retailers recovered from the economic downturn. In June 2014, the average hourly wage in retail was $10.29, so Walmart still has a number lower than the average. In the long run, higher wages mean less turnover, happier employees and staff willing to spend more of their paychecks at their workplaces. Higher wages are win-win scenarios for employees and employers.

An overall rise in retail salaries means the economy is back. Coupled with lower gas prices, greater company profits and lower inflation rates, consumers now have more spending money to keep the economy racing forward. Hopefully, the trend of higher wages will continue.

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]]>The retail industry is well-known for being competitive. With constantly changing trends and customers increasingly demanding a seamless, omnichannel shopping experience, collecting and analyzing data from purchases is essential to maintain a competitive edge. Shopper panels and retail data are two of the most effective tools for boosting sales and retaining customer loyalty.

The most important aspect of gathering data on purchases is to decide the focus of the data. Retailers can gain insight into the purchasing trends of certain consumers through shopper panels, or they can collect data about the sales of products at a particular retail store or across an entire market. In many cases, retailers benefit from both kinds of data.

Shopper panel data focuses on information about the shopping habits of a specific demographic or household. Typically, this information is gathered when customers use loyalty cards or frequent shopper programs when making purchases. Shopper panels have the benefit of giving retailers a complete record of what a customer purchases over a long period of time. With this information, retailers can distribute targeted ads or print catalogues featuring the kind of items most often purchased by a customer rather than distributing the same costly marketing materials to all customers.

The major downside to shopper panels is that it is difficult to ascertain sales trends of a specific item, since purchases made without using a loyalty program are not reflected in the data. Additionally, this kind of data collection requires customers to sign up for and use some kind of loyalty program that allows a retailer to track their purchases. Often, retailers must offer an incentive, which can be costly. However, these kinds of customer loyalty marketing concepts can pay off, if done right.

In contrast, retail data focuses on the quantity and type of products sold rather than the shopping habits of specific customers. Retail data is commonly gathered through point-of-sale systems. This information is used to track the success of a particular store, or it can be narrowed to a certain time frame to assess the effectiveness of sales. Unlike shopper panels, retail data is not useful for market research, but it is very effective at addressing pricing and supply chain issues.

When it comes to retail data, retailers have the option to choose from two different data sources: retailer direct data and syndicated data. As the name suggests, retailer direct data only shows all of the products sold at a particular retailer. On the other hand, syndicated data is third-party data that shows how a wide array of products is selling across a certain market or geographic area and can provide information on the sales of competing retailers.

Ultimately, retailers can increase revenue by using a combination of shopper panels and retail data. However, the cost involved with gathering such data and the time required to sort and analyze the data presents a burden for small and mid-sized retailers. Carefully analyzing the pros and cons of retail data and shopper panels to choose a single data focus can result in a major boost to sales and more effective marketing.

]]>Amazon.com has become a retail force thanks to diversified products, Amazon Prime memberships, outstanding customer service and guaranteed shipping. Retail customers discover the value of Amazon.com and keep coming back to the company time and again, even though some of its products may not necessarily be the least expensive among online retailers.

A study released in late January 2015 notes that Amazon Prime members spend more and shop more on the website as compared to non-members. Prime customers spend an average of $1,500 per year versus $625 annually for non-Prime members. People who have the service shop 50 percent more, and its members account for 45 percent of all Amazon.com customers. As many as 500 U.S.-based Amazon.com customers were surveyed for the report, and the authors of the study marveled at the way shoppers saw the value of Amazon.com versus other online retailers.

Amazon Prime gives shoppers free two-day shipping and free access to certain streaming music and videos. The perks of the $99 subscription outweigh potential costs in this case. Over the span of $1,500 of orders and one year of shopping, free two-day shipping pays for itself. Other online retailers may offer free shipping, but only if someone buys more than a certain amount. Amazon.com created a massive base of customer loyalty when 40 million Amazon Prime members recognized the value of its services. Even though items may be cheaper on other retail websites, receiving the items in two days instead of a week added something extra to the ordering process not found with any other retailer.

Customers who take into account the value of membership find that the products are not always about discounts at checkout. Sometimes, value comes in the form of saving time, providing a great overall customer experience and guaranteeing quality. A seemingly large upfront fee of $99 seems small compared to $1,500 per year in spending. Amazon.com responded by making some products even more valuable to repeat customers. Some products have additional discounts for Amazon Prime members, and exclusive video content comes only with a membership. The subscription service is more than just free shipping. Customers love the future incentives enough to spend $99 up front and save money later.

The value of the online retailer's services becomes even more recognizable as a place for one-stop shopping. Instead of going to one retailer to find paper towels and another to find dog food, shoppers can find both in one place. A lack of sales tax in some cases makes Amazon.com even more attractive than having items shipped, for free, to the nearest location of brick-and-mortar national retailers. Customers also get the convenience of having items delivered to their front door.

Amazon Prime shows that shoppers love bargains, convenience and free stuff. Retailers that emulate Amazon.com's model should look closely at what creates value for shoppers who are willing to spend extra money for added services.

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]]>Walmart saw impressive growth and expansion through the 1990s and 2000s thanks to Supercenters, Neighborhood Markets and Academy sporting goods stores. However, in 2014, the national retailer saw its American-based revenue slip. Several improvements must occur for the world's largest retail chain to regain its luster, especially with Walmart employees.

During its February 2015 earnings call, CEO Doug McMillan touted a raise for many employees to improve employee morale. Protests over long hours, little pay and Black Friday hours may have made an impact thanks to negative press and pressures from politicians. Employees start at $9 per hour beginning in April 2015, and that figure rises to $10 per hour a year later. The move affects 500,000 Walmart employees at a cost of $1 billion.

Walmart finally gets it. To be a retail industry leader, the company must lead by example. Walmart employees staged sit-ins, picket lines and online petitions to get noticed. Even more drastic actions such as lawsuits and attempts to unionize made Walmart executives take notice. McMillan heard the pleas of its poorest workers, and he helped. Now, the onus is on improving the workers' hours. Walmart, like many retailers, cannot afford full-time employees due to costly health insurance premiums.

The next step for Walmart employees includes refreshing big-box stores. Adding fresher foods, guaranteed produce and organic choices helped. However, customer service among associates must improve. A new attitude can bring about new displays, better store organization and brighter merchandise. Stores must get rid of "hanger fatigue" on its clothing racks in order to look better to everyday buyers.

The move to increase pay for Walmart employees comes more than a year after the national retailer promised to invest $50 billion over 10 years for products that are made in America. The initiative means well. Initially, Walmart ran into sourcing problems because many manufacturers outsource parts to Asian companies who ship materials to America. The company hosted a Manufacturing Summit in August 2014 to address issues such as infrastructure, new factories and raw materials needed to reshore manufacturing to the United States from Asia. The aim is to create more efficient manufacturing processes that make less expensive goods due to new technology.

Other retailers are on notice. In order to compete, companies such as Target and Home Depot may need to invest money or risk losing market share. Associates may become more loyal and spend more of their hard-earned money on their own employer. This raises Walmart's profits in the long term by increasing revenue from within its own system.

Walmart's two main assets are its massive workforce and less expensive products. Investing more money in Walmart employees and American manufacturers show that the company is willing to take big risks for future rewards. The retailer is trying to lead the way with regards to showing it is good for American commerce rather than an inhumane juggernaut only concerned with profits.

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]]>With the convenience and immediacy of modern technology transforming the marketplace, customer demands are changing rapidly and forcing companies to conform to a new retail model unlike anything the industry has seen before. Experts warn that retailers who don't adapt to the new retail model could struggle to stay afloat.

The retail model of the near future looks radically different from the model used by the industry just one decade ago, says Bashar Nejdawi, president of supply chain service provider Ingram Micro Mobility. The retail industry expert predicts that in just five years, traditional consumer electronics stores will be lost, along with many other brick-and-mortar retail outlets.

Whereas retailers today focus mostly on selling products, consumers increasingly prefer to rent items such as mobile devices, digital content and even cars. An increasing number of young people are foregoing car ownership in favor of rental programs such as Zip Car. In 2011, 18- to 34-year-olds bought nearly 30 percent fewer vehicles than they did in 2007, reports the AAA Foundation for Traffic Safety.

Sales of digital media have also fallen during the last five years, as consumers turn away from CDs, DVDs and even digital downloads in favor of streaming services such as Spotify and Netflix for audio and video content. These relatively inexpensive, on-demand online services are also edging out competition from traditional cable and satellite television packages.

Mobile electronics is one market where renting rather than owning is likely to catch on quickly. In a world where consumers always want to own the latest devices, paying several hundred dollars for the latest smartphone doesn't always seem like a good deal. Many consumers prefer programs that allow them to lease the latest phones for a monthly fee and then switch to the updated models as soon as they are released. This new retail model poses challenges to mobile electronics retailers, who must deliver the latest products to consumers and then work out what to do with the returned phones when the leases expire.

Consumers are also demanding more customization than ever before. Rather than buying shoes and clothing off the rack, consumers are turning to services that allow them to create their own personalized apparel. For example, miAdidas allows customers to add personal logos and designs to their shoes. This new retail model requires a shake-up of traditional manufacturing methods in order to meet the demand for customization.

Consumers are demanding ever-greater levels of customization from retailers, and they also expect timely service from suppliers. Retailers must act quickly to adapt to the new retail model, ensuring that their staff are trained to meet customer demands and that their logistics chains are capable of rapid delivery of the new, high-quality products that customers expect.

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]]>If you have a limited amount of money to attract and retain new customers, you might think loyalty programs are an expensive waste of time. In reality, these programs help retailers increase their profits and build better relationships with customers — but only if you offer the right rewards. If you have been struggling to build customer loyalty, think about implementing a program that rewards customers for repeat purchases.

In a crowded market, loyalty programs help differentiate retailers from their competitors, helping them earn more money and attract customers from profitable market segments. If a neighborhood has two stores with similar merchandise and comparable prices, customers are more likely to shop at the store that offers discounts, free gifts or other rewards. If you don't have your own loyalty program, you may be losing customers to a retailer that does.

Loyalty programs aren't as helpful for grocery stores as they are for other retailers due to the size of the reward offered. A customer may not be willing to share personal information or sign up for a loyalty card if all she is going to get is a dollar coupon. Companies that offer substantial discounts or free items worth several dollars seem to do a better job using loyalty programs to build loyal customer bases.

Tiered loyalty programs seem to produce better results than programs that only have one level. The lowest level of an airline loyalty program might give customers perks such as one free checked bag or a free drink at the airport bar, but the highest tiers offer exclusive perks such as access to the airport lounge or major discounts on air travel. Using a tiered system makes customers feel like they will miss out on good rewards if they use another company, which is why tiered systems are so effective.

Using a tiered system has an added benefit for retailers: the opportunity to deliver targeted offers to specific groups of people. If customers meet the criteria for a certain level of your program, you know how much money they spend with your company annually, and you may even have information about their personal preferences on file. Instead of delivering the same offer to all of your customers, you have the opportunity to deliver specific offers, making it easier to increase the conversion rate on each of your marketing pieces.

If you want customers to develop positive perceptions of your business, you must offer rewards your customers actually want. If you give a customers a free item they'll never use, the reward has no value. If you offer a discount off their next purchase, however, they're likely to return to your store to use the discount. There is a chance customers will spend more money than usual when they feels they're getting a bargain.

If you are struggling to retain customers, implementing your own loyalty program is a good way to start building profitable relationships, but you must offer valuable rewards. Take a look at the loyalty programs offered by your competitors to get an idea of how other companies build customer loyalty and increase their profits.

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]]>Whole Foods market remains a health-food juggernaut, despite the company's recent earnings debacles that drastically lowered its stock price in 2014. John Mackey, the CEO and founder, changed his strategy in a few key areas to try to draw customers back to his stores.

Mackey and co-CEO Walter Robb cite competition and aggressive expansion caused the vaunted chain's slowdown in the early 2010s. The Great Recession sent stock prices from $30 to $4 before the company rebounded to $60 per share in 2013. Then came May 2014, when Whole Foods cut is sales and earnings forecasts for the third time in 12 months. The stock plummeted 15 percent.

Mackey and Robb then decided to do things differently to become more like the competition. Whole Foods, traditionally, shuns advertising and marketing. Instead of nationwide commercials, the grocery chain relies on word of mouth to get customers in stores. In October 2014, the company aired a rare nationally televised commercial after spending $20 million on advertising.

Some items now go on sale in the produce aisle to remain competitive with rival stores that have lower prices. Several other chains has crept into Whole Foods' territory, and retailers such as Walmart and Kroger now have organic selections on basic items. In order to stay relevant, Mackey had to lower prices in some key areas.

Another marketing ploy brought Whole Foods into the mainstream consciousness. A new loyalty program runs on the company's smartphone app at about a dozen stores in the Northeast. Rewards include discounts and cooking classes run by an in-store chef. The grocery chain had a loyalty program in the 1990s, but Mackey shuttered the idea when customers resented that in-store discounts applied only to cardholders.

Mackey hopes to do something even more unique in the future. The CEO wants to offer health clinics for employees and customers. Mackey calls the program Total Health Immersion, a week-long program during which people can talk to health care professionals about diet, weight loss and healthy living. The program would likely be a first for the retail industry. If this health care model is successful, Mackey states other companies will surely follow the example.

Loyal employees love working for the popular chain. Starting wage is $10 per hour, with upper-level store employees making $20 to $28 hourly. Employees have access to health insurance, and the grocery chain frequently makes Fortune's list of best companies for which to work in America. The company still leads the organic food sector in terms of a place people want to work and shop.

Despite recent snafus, Whole Foods' stock rebounded 6 percent in January 2015 thanks, in part, to its new marketing initiatives. The organic food retailer still has a long way to go before it recovers enough to compete with discount chains. The key remains offering goods and services found nowhere else.

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]]>In 2015, many new and exciting products are available. However, there are just as many products and services that may not be as necessary as they once were. Here are 10 redundant products that consumers never need to buy again.

1. Cable TV

Cable TV used to be very popular, but it is quickly becoming a redundant product as consumers switch to cheaper alternatives, including streaming services such as Netflix, Amazon Prime and Hulu. Whereas cable TV can cost over $100 a month, streaming services cost more like $8 a month. Streaming services also give consumers complete freedom over the shows they watch.

2. Name-Brand Razorblades

Name-brand razorblades work well, but they are expensive. Many cheaper alternatives are coming onto the market. Consumers are also using membership programs, which sell cut-price blades on a mail-order subscription basis.

3. Bottled Water

Americans are starting to wake up to the fact that bottled water is no cleaner, safer or healthier than tap water. In fact, 45 percent of bottle water brands source their water from the municipal supply, so it's actually the same as tap water, but much more expensive.

4. Credit Monitoring Services and Identity Theft Insurance

Crediting monitoring services and identity theft insurance claim to protect customers from fraud, but many experts say that they are redundant products. Banks already have policies in place to protect customers from identity theft and other types of fraud.

5. CDs and DVDs

Streaming services are turning CDs and DVDs into redundant products. Sales of DVDs are already dropping, with an 8 percent decrease in 2013.

6. Memory Sticks

Memory sticks are also becoming redundant products, as online storage services gain popularity. Many services provide some storage for free, with more space available for a small fee.

7. Phablets

Phablets are a phase, according to many technology experts. With a size midway between a phone and a tablet, phablets were advertised as offering the best of both worlds, but many consumers find they prefer having phones that can fit in their pockets and tablets that offer large screens for reading and Web browsing.

8. Paid Online Dating Services

Online dating is hot, but the rise of free sites has turned paid memberships into redundant products. Whether consumers are looking for a fling or a serious commitment, there are free dating sites that can meet their needs.

9. Moonshine

Since 2009, there has been a trend toward boutique moonshine, an unaged spirit that is colorless rather than brown. However, consumers are realizing that moonshine doesn't have the same depth as aged whiskeys.

10. 4K TVs

4K televisions offer ultrahigh definition, but they are very expensive. Many consumers are realizing that the improved definition is not worth the extra cost.

Consumers have no need of the 10 redundant products listed above as increasingly cheaper alternatives are invading the market each day. Many experts predict that sales of these products and services are likely to decrease over the next few years.